If a Guaranty Contract Is Entered into Subsequent to the Original

question 37

Multiple Choice

If a guaranty contract is entered into subsequent to the original transaction:

• A) permission must be obtained from the state legislature.
• B) no new consideration is required.
• C) new consideration must be given for the promise of the guarantor.
• D) no new consideration is required for the promise of the surety.

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Definitions:

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Financial obligations or debts a company owes to external parties.

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