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Nancy Missed a Payment on Her Signature Loan to Pacific

Question 30

Multiple Choice

Nancy missed a payment on her signature loan to Pacific Bank.The bank threatened to bring her to court unless she could pledge some assets or find someone to be a guarantor.Nancy's friend Lynn agreed to sign as guarantor provided Nancy wouldn't tell Lynn's husband.In response to Lynn's promise,what is the necessary consideration for the guarantee?


A) the bank's act of forbearance
B) that Nancy not tell Lynn's husband
C) that Lynn sign the contract under seal
D) Nancy's endearment to a friend
E) There is no consideration-that's a problem.

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