[Rough Start] Allison, Who Just Graduated from College, Wanted to Buy

question 85

Multiple Choice

[Rough Start] Allison, who just graduated from college, wanted to buy a new car. However, she did not have much of a credit history, and the bank would not give her a loan unless she had a cosigner who agreed to be liable on the loan along with Allison. Allison's father cosigned with Allison on her loan at the bank. Allison also wanted to start a real estate business. She needed funds with which to do so. Her boyfriend, Sean, promised the bank, in writing that he would pay Allison's start-up loan for the real estate business if Allison did not do so. Unfortunately, Allison did not make any money in the real estate business. She went bankrupt along with Sean, who had been acting as her receptionist.
-The agreement entered into between Allison's father and the bank is called what?

• A) A suretyship
• B) A guaranty
• C) A certified agreement
• D) An acknowledged agreement
• E) An executory promise

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Definitions:

Damages Recoverable

The amount of money that can be claimed or awarded as compensation for loss or injury in a legal action.

Dollar Limits

The maximum amount of money that can be claimed from a jurisdictional perspective or under a specific insurance policy.

Breach Of The Insurance Contract

occurs when either the insurer or the insured fails to fulfill their contractual obligations in an insurance policy.

Policy Provisions

Specific terms and conditions outlined in an insurance policy or other formal document that define coverage, limitations, and obligations of the parties involved.