Creditor required that Apex Co. obtain a performance bond for contracting work Apex agreed to perform. The bond issued by Surety contained forged signatures of Apex's principals. The fraud on Surety
A) discharges the surety
B) exonerates the surety
C) renders the Creditor-Apex contract void
D) has no effect on Surety's obligation to Credito
E) discharges Apex

Question

Quizplus · Accepted Answer

The fraud on Surety has no effect on Surety's obligation to Creditor because the surety is not a party to the Creditor-Apex contract.

Creditor Required That Apex Co