Why is a guaranty contract similar to a suretyship contract?

A) Both a guarantor and a surety join the principal in making a promise.
B) Both a surety and a guarantor are primarily liable for the performance of another's debt.
C) Both a guarantor and a surety are secondarily liable for the performance of another's debt.
D) Both a guarantor and a surety agree to answer for the obligations of a debtor.

Guaranty Contract

A legal agreement where a guarantor agrees to fulfill the financial obligations of a debtor to a lender, in case the debtor fails to do so.

Suretyship Contract

An agreement whereby a party (surety) guarantees the performance of an obligation by another party (principal) to a third party (obligee).

Primarily Liable

The main party responsible for fulfilling an obligation or settling a debt in legal or financial contexts.