The Surety Has Certain Defenses to Paying $\bullet$ General Contract Defenses: the Surety May Raise Common Defenses Like

question 27

Essay

The surety has certain defenses to paying.What are they?
e.g.,that debtor has defaulted several times before).
$\bullet$ General contract defenses: The surety may raise common defenses like incapacity infancy),lack of consideration unless promissory estoppel can be substituted or unless no separate consideration is necessary because the surety's and debtor's obligations arise at the same time),and creditor's fraud or duress on surety.However,fraud by the principal debtor on the surety to induce the suretyship will not release the surety if the creditor extended credit in good faith; if the creditor knows of the fraud perpetrated by the debtor on the surety,the surety may avoid liability.
Moderate

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Definitions:

Average Total Cost

The total cost of production divided by the quantity of output produced, representing the average cost per unit of output.

Total Cost

The complete cost of production, including both fixed and variable costs, incurred by a firm in producing a specific amount of output.

Variable Cost

Expenses that fluctuate based on the volume of goods or services a company generates, including materials and labor.

Quantity

Quantity refers to the amount or number of a material or immaterial entity that is measured or quantifiable.