A surety is liable from the moment of default whereas a guarantor is ordinarily only liable if the creditor cannot collect from the principal debtor.

Question

Quizplus · Accepted Answer

This statement accurately distinguishes the difference between a surety and a guarantor, with a surety being immediately liable upon default and a guarantor only being liable as a last resort if the creditor cannot collect from the debtor.

A Surety Is Liable from the Moment of Default Whereas