What party(ies) is/are involved in a suretyship relationship?
A) An ancillary bailee.
B) Principal bailee.
C) The principal debtor.
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 guaranteed), and the creditor (to whom the debt or obligation is owed). The principal debtor is directly involved as the party whose obligation is the subject of the suretyship. Choices A and B, ancillary bailee and principal bailee, respectively, are not directly related to the concept of suretyship, which is a contractual arrangement involving a guarantee of performance or payment.

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