Fact Pattern 28-1A

question 13

Multiple Choice

Fact Pattern 28-1A
Dina asks Edie to co-sign a credit application so that she can borrow money and buy a truck from Finest Quality Motors.
-Refer to Fact Pattern 28-1A. If, after the loan agreement is signed, Dina agrees to a higher rate of interest without telling Edie, then Edie is

• A) discharged from the agreement.
• B) liable at the higher rate of interest.
• C) liable at the lower rate of interest.
• D) liable for the principal only.

---

Definitions:

Advertisement

Public communication that promotes the features, advantages, and qualities of a product, service, or brand.

Offer

A key factor in the agreement element of a contract; consists of the terms and conditions set by one party, the offeror, and presented to another party, the offeree.

Formation

The process of creating or constituting something's structure or establishment.

Agreement

An agreement is a mutual understanding or arrangement between two or more parties, often formalized by a contract.