Which ONE of the following statements is CORRECT?
1. The surety may not rely on defects in the liability of
the principal debtor, such as misrepresentation in
order to avoid liability
2. The surely may not rely on personal defences- such
as minority, which may be at the disposal of the
principal debtor
3. The surety’s obligation is enforceable if the principal
debtor has not defaulted in the performance of the
principal obligation
4. A creditor may enforce a surety's obligation for a
debt of a certain or uncertain amount
The correct statement is: 3. The surety’s obligation is enforceable if the principal debtor has not defaulted in the performance of the principal obligation.
The correct statement is:
3. The surety’s obligation is enforceable if the principal debtor has not defaulted in the performance of the principal obligation.
To determine the correct statement, let's analyze each option:
1. The statement suggests that a surety cannot avoid liability by relying on defects in the liability of the principal debtor, such as misrepresentation. To validate this statement, you would need to refer to the legal provisions or principles governing suretyship in your jurisdiction. Consult relevant legal resources, such as the specific laws or legal precedents, to verify if this statement is correct.
2. This statement claims that a surety cannot rely on personal defenses, like minority, that are available to the principal debtor. Similarly to the previous statement, you should consult the relevant legal resources in your jurisdiction to determine the accuracy of this statement.
3. According to this statement, the surety's obligation is enforceable only if the principal debtor has not defaulted on their performance of the principal obligation. To verify the correctness of this statement, you need to examine the legal provisions or principles governing suretyship in your jurisdiction. Refer to the applicable laws or legal precedents to determine the accuracy of this statement.
4. The statement suggests that a creditor can enforce a surety's obligation for a debt of a certain or uncertain amount. Once again, you need to consult the relevant legal resources to determine if this statement aligns with the legal provisions or principles in your jurisdiction.
In all cases, it is essential to refer to the specific legal framework and relevant legal resources in your jurisdiction to verify the correctness of these statements. Legal texts, statutes, case law, or consulting with a legal expert in your jurisdiction can provide accurate guidance on suretyship and related obligations.