Defences Available To Surety Agaisnt The Crediotr

Question 1

When can the surety raise defences against the creditor?

Answer 1

If the principle obligation is illegal or there wa s a mistake, or duress for example

Question 2

What is benefit of excursion

Answer 2

The surety may claim that the creditor must exhibit all his legal remedies on the principle debtor first

Question 3

3 reasons why the benefit of excursion may not be available to the surety

Answer 3

1. If security has renounced the benefit
2. The surety has bound himself as surety AND co-principle debtor
3. The principle debtor has been sequetsrated or left the country and can’t be found

Question 4

If more than one person stands surety for a debt what are they called?

Answer 4

Co-sureties

Question 5

If the co-sureties did not set out in the contract what propetion of the debt they must each pay, then what happens

Answer 5

It becomes equibly divisible

Question 6

3 reasons why the benefits of division are not available to surety?

Answer 6

1. He renounced it
2. He has bound himself as surety AND co-principle debtor
3. Where the recovery from co-surety would be impossible, so where he is missing