Which of the Following Statements Regarding the Securing of Debt

question 109

Multiple Choice

Which of the following statements regarding the securing of debt is true?

• A) The term guarantee, otherwise known as an indemnity, refers to a primary debt obligation.
• B) To avoid problems related to consideration, lending institutions often require that guarantees be placed under seal.
• C) In every province, there is now a requirement that a guarantor appear before a notary public.
• D) Because of the principle of caveat emptor, a creditor has no obligation to protect the interests of a guarantor.
• E) As guarantees are mere formalities, there is little point in getting legal advice prior to executing one.

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Definitions:

Physical Appearance

The outward look or aspect of a person or thing, often considered in terms of its impact on others.

Reciprocity

A social norm or principle entailing mutual exchange of goods, services, favors, or other positive actions between individuals or entities.

Private Employers

Individuals or entities that operate businesses or organizations not owned or controlled by the government, employing workers in the private sector.