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Doral, Eduard, and Francesca are co-sureties of Glenda's debt to Hi-Credit Company. Doral pays Glenda's entire debt. Doral's right to seek proportionate payments from Eduard and Francesca is the right of

A) Reimbursement
B) Subrogation
C) Indemnification
D) Contribution

User Miquella
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1 Answer

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Final answer:

Doral's right to seek proportionate payments from Eduard and Francesca after paying off the entire debt is the right of Contribution. This allows a co-surety who pays more than their share to recover the excess from the other co-sureties.

Step-by-step explanation:

When Doral, Eduard, and Francesca act as co-sureties for Glenda's debt to Hi-Credit Company, they share the liability of the debt. If Doral pays off the entire debt, she has the right to seek a proportionate amount from her co-sureties, Eduard and Francesca. This right is referred to as the right of Contribution, which means that each co-surety is responsible for their equal share of the debt unless agreed otherwise. The right of subrogation would come into play if Doral assumed Glenda's position towards Hi-Credit Company after paying off the debt, while indemnification would be more applicable if Doral were to be compensated for a loss suffered due to a third party's act or default.

User Misa
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