Co-sureties liable to contribute equally Where two or more persons are co-sureties for the same debt or duty, either jointly or severally, and whether under the same or different contracts, and whether with or without the knowledge of each other, the co-sureties, in the absence of any contract to the contrary, are liable, as between […]

Implied promise to indemnify surety In every contract of guarantee there is an implied promise by the principal debtor to indemnify the surety, and the surety is entitled to recover from the principal debtor whatever sum he has rightfully paid under the guarantee, but, no sums which he has paid wrongfully.Illustrations(a) B is indebted to

Guarantee on contract that creditor shall not act on it until co-surety joins —Where a person gives a guarantee upon a contract that the creditor shall not act upon it until another person hasjoined in it as co-surety, the guarantee is not valid if that other person does not join. Practice area’s of B K

Guarantee obtained by concealment invalid Any guarantee which the creditor has obtained by means of keeping silence as to material circumstances, is invalid.Illustrations(a) A engages B as clerk to collect money for him. B fails to account for some of his receipts, and A in consequence callsupon him to furnish security for his duly accounting.

Guarantee obtained by misrepresentation invalid Any guarantee which has been obtained by means of misrepresentation made by the creditor, or with his knowledge and assent, concerning a material part of the transaction, is invalid. Practice area’s of B K Goyal & Co LLP Income Tax Return Filing | Income Tax Appeal | Income Tax Notice

Surety’s right to benefit of creditor’s securities A surety is entitled to the benefit of every security which the creditor has against the principal debtor at the time when the contract of suretyship is entered into, whether the surety knows of the existence of such security or not; and if the creditor loses, or, without

Rights of surety on payment or performance Where a guaranteed debt has become due, or default of the principal debtor to perform a guaranteed duty has taken place, the surety upon payment or performance of all that he is liable for, is invested with all the rights which the creditor had against the Principal debtor.

Discharge of surety by creditor’s act or omission impairing surety’s eventual remedy If the creditor does any act which is inconsistent with the rights of the surety, or omits to do any act which his duty to the surety requires him to do, and the eventual remedy of the surety himself against the principal debtor