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Which is not true regarding the formation of a suretyship? A) The suretyship agreement must be in writing. B)It involves three parties - the principal
Which is not true regarding the formation of a suretyship?
A) The suretyship agreement must be in writing.
B)It involves three parties - the principal debtor, a creditor, and the surety (as secondary obligor).
C) Consideration is required to make the suretyship agreement binding on the surety.
D) A creditor's extension of credit to the principal debtor can never be sufficient consideration to enforce the surety's promise.
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