A person or company that guarantees to pay money or perform an act if the responsible party fails is called a

• A. Undertaking
• B. Surety
• C. Transcript
• D. Summons

Answer: (B)

Suretyship is a arrangement where a person or company guarantees another’s obligation, meaning they promise to pay money or perform an act if the primary party fails to do so. The surety takes on liability if the principal defaults, and the party owed the obligation can pursue the surety to satisfy the claim. This is common with bonds used in court or contracts, such as bail bonds or performance bonds. An undertaking is the promise itself, not the guarantor; a transcript is a written record of proceedings; a summons is a notice to appear. So the term that fits a person or company who guarantees payment or performance is the surety.