A surety can use any defenses available to a debtor to avoid liability on the obligation to the creditor.

Question

Quizplus · Accepted Answer

This statement is true. A surety is someone who guarantees the debt of another person (the principal debtor) and assumes liability if the debtor fails to pay the debt. The surety and the debtor are both responsible for the debt, and the surety can use any defenses available to the debtor to avoid liability on the obligation to the creditor. This includes defenses such as fraud, duress, illegality, and breach of contract.

A Surety Can Use Any Defenses Available to a Debtor