D is corrent. A third-party beneficiary contract involves an agreement between two parties in which the third-party beneficiary receives benefits under the contract without being one of the primary parties to it. No one is acting as a surety of another’s obligation in such case. A is incorrect. The cosigner acts as a surety and is obligated to pay the loan if the primary debtor defaults. B is incorrect because the accommodation endorser guarantees payment of the note. C is incorrect because an endorser of a negotiable instrument agrees to pay if the instrument is not paid.
