Which of the Following Is Correct Concerning Suretyship and Guaranty

question 12

Multiple Choice

Which of the following is correct concerning suretyship and guaranty?

• A) A surety is always liable from the moment the principal is in default.
• B) A guarantor is always liable from the moment the principal is in default.
• C) Both are undertakings by one person, for a consideration, to pay another person a sum of money in the event that the other person sustains a specified loss.
• D) Neither can be exonerated from liability.

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Definitions:

Information Processing

The series of actions or steps taken to understand and use information.

Problem Solving

The process of identifying a challenge and finding an effective solution for it.

Cerebral Cortex

The outer layer of the cerebrum in the brain, involved in various high-level brain functions such as thought, memory, and consciousness.

Primary Motor Cortex

An area of the brain located in the frontal lobe, involved in planning, control, and execution of voluntary movements.