Which of the Following Statements Regarding the Securing of Debt

question 108

Multiple Choice

Which of the following statements regarding the securing of debt is true?

• A) Because of the principle of caveat emptor, a creditor has no obligation to protect the interests of a guarantor.
• B) In every province, there is now a requirement that a guarantor appear before a notary public.
• C) To avoid problems related to consideration, lending institutions often require that guarantees be placed under seal.
• D) As guarantees are mere formalities, there is little point in getting legal advice prior to executing one.
• E) The term guarantee, otherwise known as an indemnity, refers to a primary debt obligation.

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Definitions:

Consciously Perceive

The process of being aware of and understanding sensory information or stimuli through one's conscious mind.

Finger-Thumb Distance

The measurement of the span between the thumb and any of the fingers, especially used in anthropometric studies or to assess physical or motor development.

Blindsight

A phenomenon in which individuals who are perceptually blind in certain areas of their visual field demonstrate some response to visual stimuli, indicating functioning of visual pathways despite the lack of conscious visual experience.

Traffic Accidents

Incidents on the road involving vehicles that result in damage or injury.