To be relieved of obligations as surety,a compensated surety must show that:

A) he is secondarily liable for the payment of the debt.
B) a change in the contract was material and prejudicial to him.
C) he lacks the capacity to fulfill his promise.
D) he has provided adequate collateral to the creditor.

Learning Objectives

• Gain insight into the roles and accountabilities of sureties, guarantors, and cosureties in the context of contract law.
• Identify the entitlements and responsibilities of participants in transactions concerning security interests.
• Differentiate between the regulatory attributes and consequences associated with sureties and guarantors.