When a Surety Pays a Claim That It Is Obligated

question 49

True/False

When a surety pays a claim that it is obligated to pay,it automatically acquires the claim and the rights of the creditor which is known as subrogation.

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Definitions:

Promissory Estoppel

A legal principle that prevents a promisor from denying a promise when the promisee relies on it to their detriment.

Consideration

A fundamental concept in contract law that refers to something of value (such as money, a promise, or an act) exchanged between parties as part of a contract.

Bargained-For Exchange

A mutual agreement between parties in which each promises to give something in exchange for a benefit.

Consideration

In contract law, consideration refers to something of value, which can be an object, service, money, or promise, exchanged between parties as the basis for a contract.