← All traps
MisconceptionObserved in bank

All Guaranties Are Gifts

This trap appears as a wrong-answer choice in 1 active question. Spotting how it is built is the repair: read each example's “why it's attractive” before the “why it's wrong.”

Subject distribution

  • Contracts1

Example wrong choices

  • 17110_sticker_press_guaranty · CONTRACTS · Choice ANo guaranty formed because unilateral guaranties always require a return promise by the print shop.

    Why it's attractive

    This choice feels formal because it treats a guaranty as needing a promise back from the creditor. The breaker is that always overreaches and points away from the performance the offer requested.

    Why it's wrong

    The word always overstates the formation requirement and clashes with unilateral performance acceptance.

    Spot it next time

    Ask whether the note requested a promise or an act.

  • 17110_sticker_press_guaranty · CONTRACTS · Choice BNo guaranty formed because Esther died before the print shop told her it had extended the credit.

    Why it's attractive

    This choice feels safe because death is a real offer-termination event and the shop had not sent notice. The breaker is that the requested credit was extended before death and the Gold Key makes notice nondecisive.

    Why it's wrong

    The choice treats later notice as the formation trigger even though requested performance happened before death.

    Spot it next time

    Apply the Gold Key: requested credit before death accepts.

  • 17110_sticker_press_guaranty · CONTRACTS · Choice CNo guaranty formed because all guaranties are merely gifts or gratuitous promises.

    Why it's attractive

    This choice feels intuitive because a guarantor is helping someone else. The breaker is that all overreaches because a requested credit extension supplies value for the guaranty.

    Why it's wrong

    The word all turns guaranties into gratuitous promises and ignores the requested credit extension.

    Spot it next time

    Identify the value Paul supplied: credit to Mary.

Practice the questions that use this trap as a distractor and get full Wrong Answer Forensics on submit.

Practice questions using this trap →