Asked by hector batalla on Jun 23, 2024
Verified
If a debtor defaults and the debtor's surety satisfies the obligation,the surety acquires the right of:
A) subrogation.
B) primary lien.
C) indemnification.
D) chattel mortgage.
Right of Subrogation
is a legal right allowing one party to assume another's rights in order to pursue recovery from a third party responsible for a loss.
Debtor's Surety
An individual or entity that guarantees the debt of a borrower, agreeing to be responsible for the repayment if the debtor fails to settle the debt.
- Examine the circumstances that permit a contracting party to invoke the privileges of subrogation, reimbursement, contribution, and exoneration.
Verified Answer
WJ
wesley jonesJun 29, 2024
Final Answer :
A
Explanation :
Under the right of subrogation,if the surety has to perform or pay the principal's obligation,then the surety acquires all of the rights that the creditor had against the principal.
Learning Objectives
- Examine the circumstances that permit a contracting party to invoke the privileges of subrogation, reimbursement, contribution, and exoneration.
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