GUARANTEE CONTRACT

Question 1

guarantor

Answer 1

the guarantor promises to pay for the debt of another if the person defaults

Question 2

indemnity

Answer 2

when you agree primary responsibility for the debt of another

Question 3

guarantor’s rights

Answer 3

1. discharge (any change kills the contract)
2. defenses (can use any legal reason the debtors might have)
3. subrogation - a right that insurance carriers have to legally pursue the third party that caused the loss

Question 4

relationship between guarantor, debtor, bank

Answer 4

the guarantor is in contract with the bank, the bank is in contract with the debtor, the debtor owes $

Question 5

turpi causa

Answer 5

you cannot benefit from illegal actions (killing someone)

Question 6

steps for negligence

Answer 6

1. duty of care
2. breach of care
3. causation
4. damages

Question 7

vicarious liability

Answer 7

1. relationship between employee and employer
2. act is related to the relationship
3. act was done during course of employment