Question

5

Question 7
Fraud on behalf of the principal that is unknown to the creditor and in
which the creditor has not taken part, does not ordinarily release a surety.
O True
2 pts
O False

Answer 1

Fraud committed by the principal does not ordinarily release a surety.

Step-by-step explanation:

Fraud committed by the principal, without the knowledge of the creditor and without the creditor's involvement, does not typically release a surety. Therefore, the statement is true. This means that if a surety has agreed to be liable for the debt of the principal, even if the principal engages in fraud unbeknownst to the creditor, the surety is still obligated to fulfill their responsibilities.

Learn more about Fraud on behalf of the principal and its impact on the surety