Bert, Chaka, and Doug are co-sureties of Erica's debt to Finance Loan Company. Bert pays Erica's entire debt. Bert's right to seek proportionate payments from Chaka and Doug is the right of
A) contribution.
B) exemption.
C) reimbursement.
D) subrogation.

Question

Bert, Chaka, and Doug are co-sureties of Erica's debt to Finance Loan Company. Bert pays Erica's entire debt. Bert's right to seek proportionate payments from Chaka and Doug is the right of​
A) ​contribution.
B) ​exemption.
C) ​reimbursement.
D) ​subrogation.

Quizplus · Accepted Answer

Contribution is the right of a co-surety who has paid more than his or her share of the debt to recover from the other co-sureties their proportionate share of the payment made. Therefore, Bert has the right to seek proportionate payments from Chaka and Doug through contribution. The other options are not applicable to the given scenario. Exemption is the right of a surety to be discharged from the obligation if there's any change in the terms of the contract. Reimbursement is the right of a surety who has made payment to the creditor to recover from the principal debtor, and Subrogation is the right of a surety who has paid the debt to stand in the creditor's shoes and recover from the principal debtor.

Bert, Chaka, and Doug Are Co-Sureties of Erica's Debt to Finance