Debtor Creditor Relationship

Question 1

Which rights does one cosurety generally have against another cosurety?

Answer 1

Contribution

Question 2

True or False: A Surety agreement must be in writing.

Answer 2

True

The Statute of Frauds requires a suretyship contract to be in writing unless the surety financially or economically benefits from making the surety agreement.

Question 3

Define: Indemnity contract

Answer 3

One party promises to reimburse debtor for payment of debt or loss if it arises.

Question 4

Define: Suretyship contract

Answer 4

Relationship whereby one person agrees to answer for the debt or default of another

Question 5

Define: Subrogation

Answer 5

Upon payment, surety obtains same rights against debtor that creditor had.

Question 6

Define:Exoneration

Answer 6

Right of surety to require the debtor to pay before surety pays.

Question 7

True or False: A Surety agreement must be in writing.

Answer 7

True

The Statute of Frauds requires a suretyship contract to be in writing unless the surety financially or economically benefits from making the surety agreement.

Question 8

Define: Indemnity contract

Answer 8

One party promises to reimburse debtor for payment of debt or loss if it arises.

Question 9

Define: Suretyship contract

Answer 9

Relationship whereby one person agrees to answer for the debt or default of another

Question 10

Define: Subrogation

Answer 10

Upon payment, surety obtains same rights against debtor that creditor had.

Question 11

Define:Exoneration

Answer 11

Right of surety to require the debtor to pay before surety pays.