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Name and Discuss the Two Categories of Warranties

question 62

Essay

Name and discuss the two categories of warranties.


Definitions:

Right of Contribution

The right that allows a party who has paid more than their share of a joint obligation to recover the excess paid from other parties responsible for the obligation.

Cosureties

Parties who jointly agree to share the responsibility for someone else's obligation, typically in a surety bond or loan guarantee.

Surety

A person or entity that takes responsibility for another's performance of an undertaking, such as fulfilling a contract or making a payment.

Conditional Guarantors

Parties that agree to fulfill the obligations of a defaulting party under certain conditions specified in the agreement.

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