Alice loans Grant $500 and Sue acts as surety under the loan agreement.When Grant defaults,Alice comes to Sue to collect the $500.Sue reaches a settlement to pay $400 to Alice in complete satisfaction of the loan.What recourse does Sue have against Grant?
A) She can require reimbursement of $400.
B) She can require payment of $500.
C) She can require payment of $100.
D) She cannot require him to pay her,since she accepted the risk of liability.
Correct Answer:
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