Questions from Business Law

Q: Allen, Barker, and Cooper are cosureties on a $750

Allen, Barker, and Cooper are cosureties on a $750,000 loan by Durham National Bank to Kingston Manufacturing Co., Inc. The maximum liability of the sureties is as follows: Allen, $750,000; Barker, $3...

Q: Peter Diamond owed Carter $500,000 secured by a first

Peter Diamond owed Carter $500,000 secured by a first mortgage on Diamond’s plant and land. Stephens was a surety on this obligation in the amount of $250,000. After Diamond defaulted on the debt, Car...

Q: Paula Daniels purchased an automobile from Carey on credit. At the

Paula Daniels purchased an automobile from Carey on credit. At the time of the sale, Scott agreed to be a surety for Paula, who is sixteen years old. The automobile’s odometer stated fifty-two thousan...

Q: Stafford Surety Co. agreed to act as the conditional guarantor of

Stafford Surety Co. agreed to act as the conditional guarantor of collection on a debt owed by Preston Decker to Cole. Stafford was paid a premium by Preston to serve as surety. Preston defaults on th...

Q: Campbell loaned Perry Dixon $7,000, which was secured

Campbell loaned Perry Dixon $7,000, which was secured by a possessory security interest in stock owned by Perry. The stock had a market value of $4,000. In addition, Campbell insisted that Perry obtai...

Q: Pamela Darden owed Clark $5,000 on an unsecured loan

Pamela Darden owed Clark $5,000 on an unsecured loan. On May 1, Pamela approached Clark for an additional loan of $3,000. Clark agreed to make the loan only if Pamela could obtain a surety. On May 5,...

Q: Patrick Dillon applied for a $10,000 loan from Carlton

Patrick Dillon applied for a $10,000 loan from Carlton Savings & Loan. Carlton required him to obtain a surety. Patrick approached Sinclair Surety Co., which insisted that Patrick provide it with a fi...

Q: Kasch and his brother owned M.W. Kasch Co.

Kasch and his brother owned M.W. Kasch Co. Kasch hired Skebba as a sales representative and over the years promoted him first to account manager; then to customer service manager, field sales manager,...

Q: On June 1, Smith contracted with Martin doing business as Martin

On June 1, Smith contracted with Martin doing business as Martin Publishing Company to distribute Martin’s newspapers and to account for the proceeds. As part of the contract, Smith agreed to furnish...

Q: Diggitt Construction Company was the low bidder on a well-digging

Diggitt Construction Company was the low bidder on a well-digging job for the Village of Drytown. On April 15, Diggitt signed a contract with Drytown for the job at a price of $40,000. At the same tim...