An Agreement Under Which One Party Agrees to Pay Drafts

question 44

Multiple Choice

An agreement under which one party agrees to pay drafts drawn by a creditor is called a: ______.

• A) contract of surety.
• B) guaranty contract.
• C) letter of credit.
• D) debtor's agreement.

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Definitions:

Coercive

Relating to or using force or threats to persuade someone to do something or to achieve compliance.

Deduct

To subtract or take away an amount or part from a total.

Salary

Regular payment made by an employer to an employee, usually monthly or biweekly, for their professional services.

Strict Disciplinarian

An individual who adheres closely to rules or codes of behavior and expects others to do the same, often employing strict or rigorous measures.