Which of the Following Is True If a Debtor Engaged

Multiple Choice

Which of the following is true if a debtor engaged in fraud in order to convince a surety or guarantor to enter into a contract with a third party?

A) Because the third party is innocent, neither the surety nor the guarantor is released from liability.
B) The surety is released from liability, but the guarantor is not.
C) The guarantor is released from liability, but the surety is not.
D) Both the guarantor and the surety will likely be released from liability.
E) Both the guarantor and the surety will likely be released from liability on interest due on the contract, but not for the principle amount.