With regard to guarantees, which of the following is false?
A) A guarantor can use any defence against the creditor that the debtor could use.
B) A legally binding promise to be primarily responsible for someone else's obligation is an indemnity.
C) A legally enforceable guarantee must satisfy all the elements required to create a binding contract.
D) A verbal guarantee is as enforceable as a written one.
E) Subrogation can result in a guarantor's being able to sue successfully the very debtor whose obligation he guaranteed.

Question

Quizplus · Accepted Answer

This statement is false. A verbal guarantee is not as enforceable as a written one because it can be difficult to prove the terms of the guarantee without written documentation.

With Regard to Guarantees, Which of the Following Is False