If a third party incurs a secondary liability for a debt, he has given a(n)
A) indemnity.
B) guarantee.
C) obligation.
D) debt.
E) easement.

Name: If a third party incurs a secondary liability for a debt, he has given a(n) A) indemnity. B) guarantee. C) obligation. D) debt. E) easement.
Brand: Quizplus
Rating: 4.8 (41 reviews)

Question

Quizplus · Accepted Answer

A guarantee is a legal commitment by a third party to assume responsibility for a debt if the primary debtor fails to pay. This creates a secondary liability for the guarantor.

If a Third Party Incurs a Secondary Liability for a Debt