A Continuing Guarantee

question 105

Multiple Choice

A continuing guarantee

• A) allows a creditor to advance further funds without affecting the obligation of the guarantor to pay in the event of default.
• B) is a primary obligation of a third party to pay a debt along with a debtor.
• C) is a written commitment not to pursue a legal claim against another.
• D) is an equitable principle assuring that when security is repossessed, there will be a period of time during which the debtor can still make payment.
• E) allows a breaching party to pay an amount specified in a contract, rather than facing a lawsuit for damages.

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Definitions:

Emmetropic

Emmetropic refers to the normal condition of the eye wherein light focuses directly on the retina, resulting in perfect vision without the need for corrective lenses.

Myopia

A vision condition where close objects appear clear but distant objects are blurry, due to the eye's shape causing light rays to focus in front of the retina.

Accommodation

The process by which the eye changes optical power to focus on an object at different distances, primarily by altering the curvature of the lens.

Hyperopic

Pertaining to farsightedness, a condition where distant objects are seen more clearly than close ones due to the light rays focusing behind the retina.