Question

On being sued by the creditor, the surety can rely on any _____ which the debtor has against the creditor.

• A. Set-off
• B. Counter claim
• C. Set-off or counter claim
• D. None of the above

Answer 1

Answer: (C)

Set-off or counter claim

Sometimes, the principal debtor is entitled to certain counter claim or deductions from the loan obtained from the creditor. In such cases, the surety is entitled to the benefit of such counter claim or deductions, if the creditor files a suit against the surety.