John receives certain goods from Tom. He promises to pay John later. This transaction is based on a(n) _____.

Question

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This transaction is a type of unsecured credit because it is based on a promise to pay later without any collateral or security provided by John to Tom. A deed of trust and mortgage involve specific types of collateral, such as property, as security for a loan. Subrogation is a legal term that refers to the substitution of one person or entity for another in a legal claim or action.

John Receives Certain Goods from Tom