As the court discusses in the Couchot case, many accommodation parties and guarantors do not understand their

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As the court discusses in the Couchot case, many accommodation parties and guarantors do not understand their liability when they sign an instrument. (As the saying goes, “Nothing is more dangerous than a fool with a pen.”) Should the UCC require that some sort of disclosure be made to an accommodation party or guarantor before they sign? That their obligations be clearly spelled out? What language would you require for a guaranty to be valid?

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Business Law and the Legal Environment

ISBN: 978-1133587491

5th edition

Authors: Jeffrey F. Beatty, Susan S. Samuelson

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