Utah Contractor Practice Exam

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What is the promise by a party to make good the mistake or debt of another party in construction contract law called?

Surety
Guarantee
Warrantee
Agreement

The correct answer is: Guarantee

The correct term for the promise by a party to make good the mistake or debt of another party in construction contract law is "Guarantee." In this context, a guarantee is a formal commitment made by one party to assume the obligation of another if they fail to fulfill their contractual duties. This is particularly important in construction projects where multiple parties may be involved, and the financial stability or reliability of one party might influence the overall success of the contract. A guarantee provides an additional layer of security, assuring the affected party that even if the primary party does not meet their obligations, there is another party willing to step in and rectify the situation. While "Surety" also relates to similar concepts in that it involves a third party who agrees to be responsible for the debt or obligations of another, it operates under a surety bond, which is a legal agreement involving additional stipulations and often used in public contracts. "Warrantee" refers to a promise or assurance provided by the seller regarding the quality or condition of the goods or services, but it does not encompass the broader aspect of taking responsibility for another’s debts or mistakes. "Agreement" is a general term that signifies mutual consent between parties and does not specifically capture this type of promise.