A(n)________ contract is one in which one person agrees to pay the debt or obligation that a second person owes to a third person if the second person fails to perform.
A)implied
B)third-party beneficiary
C)collateral
D)quasi

Question

Quizplus · Accepted Answer

A collateral contract is one in which one person (the guarantor)agrees to pay the debt or obligation that a second person (the principal debtor)owes to a third person (the obligee)if the principal debtor fails to perform.

A(n)________ Contract Is One in Which One Person Agrees to Pay