Laura is considering the possibility of becoming a surety to Carl on a debt by David, but she would like more information on the relationship between Carl and David concerning the transaction.If Laura requests such information from Carl, he must disclose it, because his failure to disclose material facts will constitute fraud.

Question

Quizplus · Accepted Answer

In suretyship, the surety (Laura) is entitled to know all material facts about the principal debtor's (David's) relationship with the creditor (Carl). Failure by Carl to disclose such facts can be considered fraudulent, as it affects Laura's decision to become a surety.

Laura Is Considering the Possibility of Becoming a Surety to Carl