Unlike primary liability, secondary liability is conditional, arising only if the primarily liable party fails to pay.

Name: Unlike primary liability, secondary liability is conditional, arising only if the primarily liable party fails to pay.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Secondary liability, such as that of a guarantor or a surety, only becomes activated if the primary debtor fails to fulfill their obligations. It is dependent on the primary debtor's inability or unwillingness to pay.

Unlike Primary Liability, Secondary Liability Is Conditional, Arising Only If