With Regard to Guarantees,which of the Following Is True

question 15

Multiple Choice

With regard to guarantees,which of the following is true?

• A)A guarantee and an indemnity are very similar in that the debtor and the guarantor stand side-by-side,both obligated under the contract.
• B)A verbal guarantee is as enforceable as a written one.
• C)If the creditor and the debtor change the terms of the agreement without permission of the guarantor,the guarantor will not be bound by the new terms,but will still be bound by the original obligations.
• D)A guarantor has less defence against the creditor that the debtor could use.
• E)A guarantee involves the guarantor agreeing to be responsible for the debt if the debtor defaults.

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Definitions:

Wrongful State of Mind

A mental state reflecting intent to deceive, commit fraud, or misconduct, often relevant in legal cases assessing punitive damages or criminal intent.

Embezzlement

The act of withholding assets for the purpose of conversion of such assets, by one or more individuals to whom the assets were entrusted, either to be held or to be used for specific purposes.

Larceny

The unlawful taking and carrying away of someone else's personal property with the intent to deprive the rightful owner of it permanently.

Embezzlement

The act of dishonestly withholding or stealing funds that have been entrusted to one's care.