Which of the Following Is Correct Concerning Suretyship and Guaranty

question 15

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 a.and b.
• D) None of the above.

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Definitions:

Nonnegotiable Document

A document that cannot be transferred or assigned to another party in a way that confers the original holder's rights to the recipient.

Origin Contract

An agreement made between parties in the country of exportation, dictating the terms of the exchange of goods or services.

Risk Of Loss

The possibility that an asset or investment's value will decrease due to changes in market conditions or other factors.

Insurance Coverage

A contract between an individual or entity and an insurance company, detailing the terms under which the insurer will compensate the insured for specified losses.