Rita is a surety for Stu's loan from Total Finance Company.Rita's right to "step into the shoes" of Total Finance,after paying Stu's debt,and ex?er?cise any of the Total Finance's rights against Stu is the right of

Question

Quizplus · Accepted Answer

The right Rita has to "step into the shoes" of Total Finance and exercise any of their rights against Stu is called subrogation. This allows Rita to take over Total Finance's position, including any rights they had to collect on the loan, after paying off Stu's debt. Contribution is when multiple parties share the responsibility of paying off a debt, redemption is the act of paying off a debt to reclaim collateral, and reimbursement is paying someone back for expenses they have already incurred. None of these accurately describe the situation between Rita, Stu, and Total Finance.

Rita Is a Surety for Stu's Loan from Total Finance