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C Guarantees the Loan of a to Happy Bank

Question 8

Multiple Choice

C guarantees the loan of A to Happy Bank.The guarantee provides that before the bank can sue C,it must give C notice.A defaults on the loan and the bank simply sues A and C.In this case


A) C will be liable because A is party to the proceedings.
B) C will be liable on the guarantee.
C) C will not be liable because only A as principle debtor is liable.
D) C will not be liable because the bank made material changes to the guarantee.
E) C will not be liable because the bank breached the terms of the guarantee.

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