Fleet Trucking, LLC, buys a white van from Go Motors, Inc. , on credit under a guaranty signed by Herbie, Fleet's president, making him personally liable if the company does not pay. Herbie is

Question

Fleet Trucking, LLC, buys a white van from Go Motors, Inc. , on credit under a guaranty signed by Herbie, Fleet's president, making him personally liable if the company does not pay. Herbie is​

Quizplus · Accepted Answer

Herbie is a guarantor because he has assumed a secondary or ancillary obligation to pay, only if Fleet Trucking, LLC, does not make the required payments. The guarantor is separate from the primary debtor and is liable only if the latter fails to perform their contractual obligations.

Fleet Trucking, LLC, Buys a White Van from Go Motors