Debtor Creditor Relationships Flashcards
1
Q
What is contribution?
A
The right of contribution arises when a cosurety, in performance of the debtor’s obligation, pays more than his proportionate share. This entitles the cosurety to compel the other cosureties to compensate him/her for the excess amount paid. Contribution is the right which only a cosurety is entitled to.
2
Q
Who does tender of performance release from obligation?
A
The tender of performance by the principal debtor completely releases the surety from obligation. However, such tender does not release the principal debtor if the contractual duty consists of the obligation to pay money.
