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Which of the following is true of suretyship and guaranty agreements?

A. The principles relating to formation, capacity, validity, and interpretation of contracts do not apply to suretyship and guaranty agreements.
B. Contracts of suretyship and guaranty need to be evidenced by record when the promise is made primarily for the promisor's benefit.
C. Suretyship or guaranty created at the same time as the original transaction requires the same consideration for the original promise as for the promise of the guarantor.
D. Suretyship or guaranty created subsequent to the original transaction requires no new consideration for the promise of the guarantor.



Answer :

GinnyAnswer

Final answer:

The answer clearly explains the true statements regarding suretyship and guaranty agreements.


Explanation:

Of the given statements regarding suretyship and guaranty agreements:

  1. Statement a: The principles relating to the formation, capacity, validity, and interpretation of contracts do apply to suretyship and guaranty agreements.
  2. Statement b: Contracts of suretyship and guaranty do need to be evidenced by record when the promise is made primarily for the promisor's benefit.
  3. Statement c: Suretyship or guaranty created at the same time as the original transaction requires the same consideration for the original promise as for the promise of the guarantor.
  4. Statement d: Suretyship or guaranty created subsequent to the original transaction requires no new consideration for the promise of the guarantor.

Therefore, statements a, b, and c are true of suretyship and guaranty agreements.


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