When the Consideration Given in Exchange for the Collateral Promise

question 43

Multiple Choice

When the consideration given in exchange for the collateral promise is something the guarantor seeks primarily for his own benefit rather than for the benefit of the primary debtor,the contract:

• A)is the opposite of an original contract.
• B)is considered void.
• C)is outside the statute of frauds.
• D)needs to be in writing.

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Definitions:

Concealment

The act of hiding something or preventing it from being known.

Experience Of Prejudice

The undergoing or encountering of negative judgments or discriminatory actions based on preconceived notions or biases.

Rejection Identification Theory

A psychological framework suggesting that people can bolster their self-esteem by identifying more closely with their own marginalized or minority group following rejection from a dominant group.

Stigmatized Group

A social group that is discredited or devalued by society due to certain attributes, stereotypes, or attributes perceived as negative.