Sheng and Min were cosureties for their friend Lei on a loan contract.When Lei failed to repay the loan within the stipulated time,Min paid the whole obligation as her surety.Min is now entitled to collect half the amount of liability from Sheng in accordance with her _____.
A) right to contribution
B) right of subrogation
C) right to reimbursement
D) right to compensation

Question

Quizplus · Accepted Answer

If several people act as cosureties for one principal, and any one of them pays the whole obligation, he or she is entitled to collect the extra amount paid from the other cosureties. This is known as the cosurety's right to contribution. The relative shares of cosureties, as well as any limitations on their liability, are normally set out in the contract of suretyship. In this scenario, Min is now entitled to collect half the amount of liability from Sheng in accordance with her right to contribution.

Sheng and Min Were Cosureties for Their Friend Lei on a Loan