Asked by Rachel Sawyer on May 19, 2024

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The right of a surety who has paid the creditor to be repaid by the principal debtor is:

A) exoneration.
B) subrogation.
C) reimbursement.
D) None of these.

Subrogation

is a legal doctrine allowing one party (usually an insurer) to step into the shoes of another party to pursue rights or claims against a third party, often to recover amounts paid out in a claim.

Surety

A form of financial guarantee, wherein one party (the surety) agrees to take on the financial obligations of another if they default.

Reimbursement

The act of compensating someone for an expense incurred, often associated with business expenses or insurance claims.

  • Comprehend the circumstances that lead to the release of a surety or guarantor from their duty.
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KW
Kelsey WatsonMay 19, 2024
Final Answer :
C
Explanation :
The right of a surety who has paid the creditor to be repaid by the principal debtor is known as reimbursement. This right allows the surety to recover the amount they have paid on behalf of the principal debtor.