Bertram,Chaka,and Dougal are co-sureties of Erica's debt to Finance Loan Company. Bertram pays Erica's entire debt. Bertram's right to seek proportionate pay-ments from Chaka and Dougal is the right of
A)contribution.
B)exemption.
C)reimbursement.
D)subrogation.

Question

Quizplus · Accepted Answer

Bertram's right to seek proportionate payments from Chaka and Dougal is the right of contribution. Contribution is a right of a surety who has paid more than his or her fair share of the debt, and seeks reimbursement from other co-sureties for their proportionate share of the debt. Option B, exemption, is not applicable in this scenario, as it refers to a right of a surety to be relieved from the obligation to pay the debt altogether. Option C, reimbursement, refers to the right of a surety who has paid the entire debt to seek reimbursement from the principal debtor. Finally, option D, subrogation, refers to the right of a surety who has paid the debt to step into the shoes of the creditor and seek repayment directly from the principal debtor. While subrogation may also be available to Bertram, the question specifically asks for the right to seek proportionate payments from other co-sureties, which is a right of contribution.

Bertram,Chaka,and Dougal Are Co-Sureties of Erica's Debt to Finance Loan