Exam 25: Other Creditors Remedies and Suretyship

Dolf borrows money from Elin.Dolf defaults.To use attachment as a remedy,Elin must first

A guaranty contract must be in writing to be enforceable.

Rico signs a lease on behalf of Start-Up Games, Inc., with Tower Office Suites. As part of the lease, Rico signs a document titled "GUARANTY," which states that it is "an absolute guaranty" of the lease's performance. -Refer to Fact Pattern 25-2.The reason for the result in the previous question is that

An artisan's lien is effective only if a creditor possesses the property subject to the lien.

Suchin's debt to Trixie is past due.Trixie obtains a judgment against Suchin to collect the debt,but Suchin refuses to pay.Trixie asks the court to order the seizure and sale of Suchin's property.This is a request for

Ian's mortgage debt to Jeff is past due.Jeff brings a legal action against Ian to collect the debt.Jeff asks the court to order the sale of the mortgaged property and the payment of a portion of the proceeds to Jeff.This is a request for

Jaycee is a surety for Katelyn's loan from Lucre Bank.Jaycee's right to be repaid by Katelyn after having paid her debt is the right of

Rico signs a lease on behalf of Start-Up Games, Inc., with Tower Office Suites. As part of the lease, Rico signs a document titled "GUARANTY," which states that it is "an absolute guaranty" of the lease's performance. -Refer to Fact Pattern 25-3.If Evermore insists that Dayna sign the loan application,making her personally liable for payment whether or not Chocolate! Chocolate! defaults,Dayna will be

A contract of suretyship must be in writing to be enforceable.

Diego performs a contract with Elwood to add a swimming pool to Elwood's property,but Elwood does not pay.Diego can file a lien on Elwood's property if,from the last date labor or materials were provided,he acts

Bill and Cody agree to guarantee Dave's debt.Bill's maximum liability is $60,000,and Cody's is $40,000.Dave owes $40,000 and is in default.Bill pays the creditor the entire amount.In the absence of an agreement to the contrary,Bill can recover from Cody

Urbana performs a contract with Virgil to add a sun porch to Virgil's house,but Virgil does not pay.In most states,Urbana can create a lien and place it on Virgil's property by filing

If a debtor offers to pay a debt owed to a creditor but the creditor refuses the tender,the surety remains obligated on the debt.

A mechanic's lien can be enforced to obtain payment for work that improves personal property.

A pipe in Gert's house springs a leak.Gert contracts with Holly's Plumbing & Construction Company to repair the pipe and fix the damage to Gert's house.Gert pays 10 percent of the price in advance.Holly's does the work,but Gert refuses to pay the rest of the price.What can Holly's do,and how is it done

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 25-1.If Edie signs the application only after language is included that requires Finest to exhaust its legal remedies against Dina before looking to her,then Edie is

Rita is a surety for Sue's loan from Total Finance Company.Rita's right to "step into the shoes" of Total Finance,after paying Sue's debt,and exercise any of the Total Finance's rights against Sue is the right of

A creditor with an artisan's lien on property can foreclose on,and sell,the property to satisfy the debt.

The law protects debtors as well as creditors.

Payment of the principal obligation will not discharge the guarantor from the obligation.