In a guaranty arrangement,the guarantor:
A) promises to pay the debt of another in any circumstance.
B) promises to pay the debt of another if that other person does not pay.
C) promises to pay the debt of another contingent upon the happening of an external event.
D) promises to assume responsibility for the quality of goods.
E) promises to collect a debt or debts on behalf of a creditor.

Question

Quizplus · Accepted Answer

In a guaranty arrangement, the guarantor promises to pay the debt of another only if that other person does not pay. It is a secondary obligation, meaning the guarantor is liable only if the primary debtor defaults on the debt.

In a Guaranty Arrangement,the Guarantor