Your brother wants to borrow $8,000 from the Bank of Britannia and has asked if you would guarantee the loan. You have been told the following with regard to guarantees. Which of the following statements is false?
a. As guarantor you can use any defense against the bank that your brother could use.
b. A guarantor becomes the primary debtor as soon as the guaranty is signed.
c. You, as guarantor, may be relieved of your obligation if the bank does anything to weaken your position through subsequent dealings with the debtor, e.g. by agreeing with your brother to increase the amount without your consent.
d. If he defaulted on his payments and you had to pay the debt to the bank, you would be subrogated to the rights of the bank, i.e. you would get the bank's right to sue your brother.
e. A legally enforceable guarantee must satisfy all the elements required to create a binding contract.