Explain Why the Surety-Guarantor Distinction Is Important

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The Answer is The surety-guarantor distinction is important because a surety is liable for the payment of another person's debt or the performance of another person's duty.The surety joins with the person primarily liable in promising to make the payments or perform the duty.The surety is primarily liable for the debtor's obligation and the debtor can demand performance from the surety at the time the debt is due.The creditor does not need to establish a default by the debtor or proceed first against the debtor on his obligation.A guaranty contract is similar,in that the promisor agrees to answer for the obligations of another.However,a grantor does not join the principal in making a promise: rather,a grantor makes a separate promise and agrees to be liable upon the happening of a certain event.A guarantor is secondarily liable and can be held to his guarantee only after the principal defaults.

Explain Why the Surety-Guarantor Distinction Is Important

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