A guarantee is
A)a promise to be primarily liable for the debt of a debtor.
B)a promise to enter into an agreement when a debtor defaults.
C)a promise to pay only if the debtor defaults.
D)a promise to purchase goods.
E)a promise to add one's signature to a legal document.

Question

Quizplus · Accepted Answer

A guarantee is a promise to pay only if the debtor defaults. It is a form of security that provides assurance to the creditor that they will receive payment even if the debtor is unable to fulfill their obligations.

A Guarantee Is