What party(ies) is/are involved in a suretyship relationship?
A) The principal debtor.
B) An ancillary bailee.
C) Principal bailee.
D) All of these.

Question

Quizplus · Accepted Answer

In a suretyship relationship, there are three primary parties involved: the surety (who agrees to be responsible for the debt or obligation of another), the principal debtor (the one whose debt or obligation is being secured), and the creditor (to whom the debt is owed). The principal debtor is directly involved as the party whose obligation is the subject of the suretyship. Choices B and C, referring to bailees, are not directly related to the concept of suretyship, which is a financial guarantee arrangement.

What Party(ies) Is/are Involved in a Suretyship Relationship