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JOHN PAUL SANDY O. ENCINARES
on Nov 28, 2024

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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.
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Karoleena RiveraNov 28, 2024
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