Multiple Choice
Which of the following is correct concerning suretyship and guaranty?
A) A surety is always liable from the moment the principal is in default.
B) A guarantor is always liable from the moment the principal is in default.
C) Both are undertakings by one person, for a consideration, to pay another person a sum of money in the event that the other person sustains a specified loss.
D) Neither can be exonerated from liability.
Correct Answer:
Verified
Correct Answer:
Verified
Q7: In a letter of credit the beneficiary
Q8: A surety may not raise the defense
Q9: Bailment given as security for the payment
Q10: Standby letters of credit are used only
Q11: Indemnity is the right of a co-obligator
Q13: When a surety pays a claim that
Q14: The issuer of a letter of credit
Q15: A guaranty of collection allows the creditor
Q16: The issuer of a letter of credit
Q17: If the creditor does not enforce the