Refer to Fact Pattern 16-3. If Beth signs the application but fails to condition her signature on Carl's
agreement to pursue its legal remedies against Adam before looking to her, then Beth is
Refer to Fact Pattern 16-3. If Beth signs the application only after language is included that requires Carl's to
exhaust its legal remedies against Adam before looking to her, then Beth is
a guarantor only.
a guarantor and a surety.
a surety only.
neither a guarantor nor a surety.
Amy signs a lease on behalf of Business Start-up, Inc. (BSI), with Cool Properties, Inc. As part of the lease,
Amy signs a document titled "GUARANTY," which states that it is "an absolute guaranty" of the lease's
performance. If BSI stops paying the rent, under the decision of the court in Case 16.1,
JSV, Inc. v. Hene Meat
, it is most likely that liability for the unpaid rent will be assessed against
Donna goes through an involuntary bankruptcy proceeding. An
bankruptcy occurs when
Pete's Auto Repair receives a discharge in bankruptcy, even though some creditors hold judgments on overdue
debts against it and others filed actions to collect on overdue debts before the bankruptcy. Pete's discharge