What contractual defenses are available to those parties involved in surety relationships?
A)The nonexistence of the principal debtor's obligation.
B)Discharge of the principal debtor's obligation.
C)Modification of the principal debtor's contract.
D)All of the above.

Question

Quizplus · Accepted Answer

All of the options listed are valid contractual defenses in surety relationships. The nonexistence of the principal debtor's obligation means that the surety can argue that there was never an obligation in the first place. Discharge of the principal debtor's obligation can occur if the debtor pays off their debt or if the debt is discharged through bankruptcy. Modification of the principal debtor's contract can occur if the surety is not informed of the changes and therefore not obligated to fulfill them.

What Contractual Defenses Are Available to Those Parties Involved in Surety