A, B, and C executed a promissory note binding themselves to pay X, Y, and Z the amount of ₱90,000.00. Assuming that C is insolvent, can A and B be held liable for C’s share in the obligation? a.Yes, the debt shall be presumed to be divided into as many equal shares as there are debtors. b. Yes. A and B shall be proportionately liable. c. No. The debts are considered distinct from one another. d. No. Only either A or B will be liable. Not both.
A, B, and C executed a promissory note binding themselves to pay X, Y, and Z the amount of ₱90,000.00. Assuming that C is insolvent, can A and B be held liable for C’s share in the obligation? a.Yes, the debt shall be presumed to be divided into as many equal shares as there are debtors. b. Yes. A and B shall be proportionately liable. c. No. The debts are considered distinct from one another. d. No. Only either A or B will be liable. Not both.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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.A, B, and C executed a promissory note binding themselves to pay X, Y, and Z the amount of ₱90,000.00. Assuming that C is insolvent, can A and B be held liable for C’s share in the obligation?
a.Yes, the debt shall be presumed to be divided into as many equal shares as there are debtors.
b. Yes. A and B shall be proportionately liable.
c. No. The debts are considered distinct from one another.
d. No. Only either A or B will be liable. Not both.
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