Solved

While Stella Was in Hong Kong, a Loan Came Due

Question 27

Multiple Choice

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?


A) Yes, since Stella was not consulted on this change.
B) Yes, because consent by Stella would be required.
C) Yes, since her position as a guarantor was clearly prejudiced.
D) No, since the change is obviously to the benefit of the guarantor.
E) No, because the risk is not materially altered to her detriment.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents