With Regard to Guarantees,which of the Following Is True

question 15

Multiple Choice

With regard to guarantees,which of the following is true?

• A)A guarantee and an indemnity are very similar in that the debtor and the guarantor stand side-by-side,both obligated under the contract.
• B)A verbal guarantee is as enforceable as a written one.
• C)If the creditor and the debtor change the terms of the agreement without permission of the guarantor,the guarantor will not be bound by the new terms,but will still be bound by the original obligations.
• D)A guarantor has less defence against the creditor that the debtor could use.
• E)A guarantee involves the guarantor agreeing to be responsible for the debt if the debtor defaults.

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Definitions:

Business Activities

Actions or tasks performed by businesses that are intended toward the production of goods or services, financial gain, or organizational growth.

Firm Offer

In contract law, an offer that explicitly states it will remain open for a specified period of time, during which it cannot be revoked by the offeror.

Irrevocable

Something that cannot be changed, revoked, or undone once established or agreed upon.

Writing

The act, process, or practice of recording thoughts, ideas, or information on a surface for communication or documentation.