Bank also wants to protect itself from a potential default

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David wants to purchase a new Fiat 500 for $20,000 to celebrate his graduation from college. Even though David has $2,500 for a down payment, he has very little credit and is not able to obtain a loan without some type of additional reassurances. David comes to you for assistance. You are willing to help David but you want to protect yourself from liability as much as possible. Would you prefer a surety or a guaranty? The bank also wants to protect itself from a potential default. Would the bank prefer a surety or guaranty? Is your oral agreement enough to form a surety or guaranty? As in all assignments, cite your sources in your work and provide references for the citations in APA format.

Reference no: EM131034558

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