With Regard to Guarantees and Indemnities, Which of the Following

question 40

Multiple Choice

With regard to guarantees and indemnities, which of the following is false?

• A) A guarantee cannot be enforced in court unless it satisfies the writing requirements set out in statute.
• B) Subrogation can result in a guarantor's being able to sue successfully the very debtor whose obligation he guaranteed.
• C) A guarantor can use any defence against the creditor that the debtor could use.
• D) A legally enforceable guarantee must satisfy all the elements required to create a binding contract except consideration.
• E) A legally binding promise to be primarily responsible for someone else's obligation is an indemnity.

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Definitions:

Vertical Axis

The vertical number line of a graph along which values of the y-variable are measured; also referred to as the y-axis.

Linear Relationship

The relationship between two variables in which the slope is constant and therefore is depicted on a graph by a curve that is a straight line.

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a particular price over a specified period.

Quantity Demanded

The overall volume of a good or service that buyers are eager and capable of acquiring at a certain price within a specific period.