Asked by
JOHN PAUL SANDY O. ENCINARES
on Nov 28, 2024Verified
To make a sale to Gourmet Inc., Hill Valley Commodities asks Gourmet's outside accountant Ingre to co-sign a credit application. According to the terms, if Gourmet defaults, Hill Valley can look to Ingre for payment without first pursuing legal remedies against Gourmet. Ingre is
A) a surety.
B) a lienor.
C) a guarantor.
D) a creditor.
Co-Sign
To sign a legal document alongside another person, often agreeing to take responsibility if the primary signer fails to meet the terms.
Credit Application
A form or request submitted by an individual or business seeking to obtain credit from a lending institution.
Defaults
Failure to fulfill an obligation, especially failure to meet a financial obligation or to appear in a court of law.
- Distinguish between the roles and rights of sureties, guarantors, and creditors in the context of debt repayment and security.
Verified Answer
KR
Learning Objectives
- Distinguish between the roles and rights of sureties, guarantors, and creditors in the context of debt repayment and security.