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:

Flood Plains

Flat areas next to rivers and streams that are prone to flooding, naturally fertile due to the deposition of river sediments.

Urban Sprawl

The spread of city buildings and houses into areas that were previously countryside, known for causing environmental and social issues.

Expansion Room

Space specifically designed or allocated to allow for growth or increase in capacity.

Vegetation

Vegetation encompasses the plant life present in a particular region or ecosystem, playing crucial roles in the ecological balance and providing habitats for animals.