Which of the Following Defenses Might a Guarantor Raise If

question 65

Multiple Choice

Which of the following defenses might a guarantor raise if the guarantor's oral promise to pay a debt is not in writing?

• A) Statute of Frauds defense
• B) Common Fraud defense
• C) Parol evidence defense
• D) Unwritten promise defense
• E) Negligence

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Definitions:

Fair Value

The price that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Bonds Payable

Long-term liabilities representing amounts owed by an entity to bondholders, to be repaid at specified maturity dates with interest.

Net Book Value

The net book value is the value at which an asset is carried on a balance sheet, calculated as the original cost minus accumulated depreciation and impairment losses.

Carrying Value

The net amount at which an asset or liability is reported in the financial statements, factoring in its original cost and any related depreciation, amortization, or impairment costs.