Which of the following would not help a surety defend himself from payment of a debt?
A) There was no consideration for the surety agreement.
B) There was a modification of the underlying contract.
C) The creditor knew the loan was risky and did not dissolve it.
D) There was fraud in the execution of the surety agreement.

Question

Quizplus · Accepted Answer

A surety can defend against payment of a debt if there was no consideration for the surety agreement, if there was a modification of the underlying contract without the surety's consent, or if there was fraud in the execution of the surety agreement. However, the creditor's knowledge of the loan's riskiness and decision not to dissolve it does not provide a defense for the surety.

Which of the Following Would Not Help a Surety Defend