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Which of the Following Is TRUE Regarding the Significance of a Guarantee

Question 26

Multiple Choice

Which of the following is TRUE regarding the significance of a guarantee?


A) A guarantee is a contingent rather than an absolute liability.
B) A guarantor makes her promise to the debtor, not to the creditor.
C) A guarantor's duty to pay arises upon notification by the debtor.
D) Strictly speaking, the creditor must notify the guarantor of the default.
E) The effect of a guarantee is more encompassing than that of an indemnity.

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