An Attorney Receives a Check from the Defendant in Settlement

question 33

Multiple Choice

An attorney receives a check from the defendant in settlement of a lawsuit brought by his client, the plaintiff.Even if the check is made out in the name of the attorney, it will belong to the client as a:

• A) spendthrift trust.
• B) totten trust.
• C) constructive trust.
• D) resulting trust.

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Definitions:

Guarantor

A person or entity that agrees to be responsible for another's debt or obligations if the original party fails to meet their responsibilities.

Guaranty

A legal commitment by one party to assume responsibility for the debt obligation of a borrower if that borrower defaults.

Suretyship

A contractual agreement where a party (surety) agrees to be responsible for the debt or obligations of another party (principal) if that party fails to fulfill them.

Cosigner

an individual who agrees to be responsible for the repayment of a loan or debt if the primary borrower fails to pay.