If a Debtor Is About to Leave the State, the Surety

question 20

True/False

If a debtor is about to leave the state, the surety may call on the creditor to take action against the debtor.

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Definitions:

Accounting Entity

A clearly defined economic unit that isolates the financial activities of a specific business from those of its owners and other businesses.

Articles of Co-partnership

A legal document that specifies the rights, responsibilities, and obligations of partners in a partnership business.

Oral Agreements

Contracts or agreements that are made through spoken communication rather than in writing, though their legal enforceability can vary.

Arbitration

A form of dispute resolution where an impartial third party, the arbitrator, makes a decision to resolve a dispute outside of court.