Asked by hector batalla on Jun 23, 2024

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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.
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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.