Drew and Earl are brothers. They agree to act as guarantors on a loan made by their sister, Flo. Flo defaults on the payments and Drew re?fuses to pay. Earl pays the debt. Earl can recover from
A) Drew and Flo under the right of proportionate liability.
B) Drew and Flo under the right of reimbursement.
C) Drew under the right of contribution and Flo under the right of subrogation.
D) no one, because the parties are brothers and sister.

Question

Quizplus · Accepted Answer

Under the right of contribution, Earl can recover from Drew for his share of the debt as they both agreed to act as guarantors. Meanwhile, under the right of subrogation, Flo can be held liable as she was the borrower who defaulted on the loan.

Drew and Earl Are Brothers