Top Posters
Since Sunday
16
j
15
m
15
a
15
Y
14
j
13
m
13
t
13
s
13
J
13
z
13
L
12
New Topic  
wrote...
Posts: 640
Rep: 0 0
2 years ago
John and Henry go to the bank so that Henry can borrow $50 000.00. The bank will only give Henry the money if John guarantees it, and John agrees in writing to do this. A couple of months later and unknown to John, Henry and the bank agree to material changes to Henry's loan, including increasing the interest rate substantially. If Henry defaults on the loan and the bank decides to sue both Henry and John,
a. John's guarantee and Henry's debt are discharged by the changes made to the loan.
b. John will be held liable on his guarantee, but Henry will not be because of the material changes to the loan.
c. John, as guarantor, will be held liable on his guarantee, and Henry, as principal debtor, will be held liable on the debt.
d. John's guarantee is discharged due to the changes made to the loan, and the bank can only sue Henry on the debt.
e. none of the above
Textbook 

The Law and Business Administration in Canada


Edition: 14th
Authors:
Read 29 times
1 Reply
Replies
Answer verified by a subject expert
wrote...
Top Poster
Posts: 676
2 years ago
Sign in or Sign up in seconds to unlock everything.
d
1

Related Topics

New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers.
Learn More
Improve Grades
Help Others
Save Time
Accessible 24/7
  149 People Browsing
 130 Signed Up Today
Your Opinion
Which 'study break' activity do you find most distracting?
Votes: 162

Related Images
 647
 899
 91