Which of the following best describes the right to indemnity?
A)It is the right of a creditor to receive interest on the debt.
B)It is the right of a principal to receive compensation from the creditor.
C)It is the right of a guarantor to be reimbursed by the principal.
D)It is the right of a creditor to withhold payment in the case of a dispute.

Question

Quizplus · Accepted Answer

The right to indemnity refers to the right of a guarantor (or someone who has fulfilled another's obligation) to be reimbursed by the principal debtor or the party primarily responsible for the obligation. This ensures that the guarantor, who steps in to fulfill the obligation on behalf of the principal, is not unfairly burdened by the cost.

Which of the Following Best Describes the Right to Indemnity