Detailed Answer
(b) The right of contribution arises when one cosurety,
in performance of debtor’s obligation, pays more than his proportionate
share of the total liability. The right of contribution entitles
the performing cosurety to reimbursement from the other
cosureties for their pro rata shares of the liability. Since Clark’s
debts have been discharged in bankruptcy, River may only exercise
his right of contribution against Zane, and may recover
nothing from Clark. Zane’s pro rata share of the remaining
$140,000 would be determined as follows:
Dollar amount guaranteed by Zane
Total amount of risk assumed by × Remaining obligation
remaining cosureties
160,000
× 140,000 = 56,000
160,000 + 240,000