Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

China Outlet made contract to purchase $1 million of china from Seller on credit. ABC Savings and Loan issued a letter of credit agreeing to

image text in transcribed
China Outlet made contract to purchase $1 million of china from Seller on credit. ABC Savings and Loan issued a letter of credit agreeing to pay $250,000 upon receipt of documents showing that the china was in fact delivered to China Outlet, China Outlet failed to pay for the china and Seller demanded the $1 million from ABC Savings and Loan. As a result: ABC Savings and Loan must pay $1 million to Seller ABC Savings and Loan must pay$250,000 immediately upon demand by Seller. ABC Savings and Loan must pay $250,000 to Seller after it receives the required documents. ABC Savings and Loan must not pay anything to Seller until ABC Savings and Loan receives the required documents and ABC Savings and Loan inspects the china to assure that Seller properly performed the contract QUESTIONS 1 p Diane purchased a jet sky for $10,000. The creditor secured the debt by placing a lien on the jet ski. Jonathan acted as the surety for the debt. Diane defaulted on her loan and was preparing to sell the jet ski and leave town with the proceeds, Jonathan knew of Dianes plans and notified the creditor. Creditor failed to act. Creditor sued Jonathan as the surety. What is Jonathana s defense? Defense of contribution. Defense of subrogation. Defense of exoneration. Jonathan does not have any defense against creditor. 1 QUESTION 9 Meenie, Miney and Moe acted as co-sureties. Meenie had a maximum exposure of $40,000, Miney had a maximum exposure of $60,000 and Moe had a maximum exposure of $80,000. Debtor defaulted when the loan was still at $180,000. Meenie paid $36,000 to the lender as full and final settlement of any and all claims against Meenie, Miney and Moe. What is the total amount that Meenie is able to recover from Miney and Moe under the theory of indemnification? $0 $24,000 $28,000 $140,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Personal Finance

Authors: Jeff Madura

4th Edition

0136117007, 9780136117001

More Books

Students also viewed these Finance questions

Question

=+b. How would you interpret the estimated coefficient b1 5 .6566?

Answered: 1 week ago

Question

Do I want people to be more like me?

Answered: 1 week ago