Question
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
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?
Multiple Choice
Because the third party is innocent, neither the surety nor the guarantor is released from liability.
Both the guarantor and the surety will likely be released from liability on interest due on the contract, but not for the principle amount.
The guarantor is released from liability, but the surety is not.
Both the guarantor and the surety will likely be released from liability. The surety is released from liability, but the guarantor is not
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started