Rosa and Sally agree to guarantee Timon's debt.Rosa's maximum liabil?ity is $30,000,and Sally's is $20,000.Timon owes $20,000 and is in default.Rosa pays the creditor the entire amount.In the ab?sence of an agree?ment to the contrary,Rosa can recover from Sally
A)$8,000.
B)$10,000.
C)$20,000.
D)0.

Question

Quizplus · Accepted Answer

Rosa paid the entire amount of $20,000, and her maximum liability is $30,000. Therefore, she can recover from Sally half of the amount she paid, which is $10,000.

Rosa and Sally Agree to Guarantee Timon's Debt