accommodation

(law) An action by one individual or legal entity (the accommodation party) that is taken as a favor, without any consideration, for another individual or legal entity (the accommodated party). An accommodation note or paper is a commercial instrument of debt that is issued by or for an accommodated party (who is expected to pay the debt) and that contains the name of the accommodation party. A person may make an accommodation, for example, to help another party raise money or obtain credit. An accommodation party is usually treated like a surety, who is responsible for the performance of the accommodated party. The distinction between an accommodation and a surety is that an accommodation is made without consideration, that is, it is freely given. See surety.

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