While Stella was in Hong Kong,a loan came due that she had guaranteed.The creditor,a kindly old man,extended the due date on the loan for thirty days,interest free.Did this action by the creditor discharge Stella from her obligation?

Question

Quizplus · Accepted Answer

The creditor extending the due date on the loan for 30 days, interest-free, is not materially altering the risk to Stella's detriment since it is to her benefit. As a guarantor, her obligation remains in place unless a material alteration to her risk occurs, such as an extension with interest or a reduction in the principal amount. Therefore, Stella is still obligated to fulfill her guarantee even though the due date has been extended.

While Stella Was in Hong Kong,a Loan Came Due That