R7-M5 Suretyship

Question 1

what is a surety and its right?

Answer 1

• one who agrees “directly” to be liable for the debt or obligation of another
• no right to require creditor for any action even to collect from the principal debtor first

Question 2

what is a guarantor and a guarantor of collectability?

Answer 2

• a guarantor is liable to the creditor only if the debtor does not perform his or her duty to the creditor
• a guarantor of collectability: liable only if the creditor is unable to collect from the debtor after exhausting all legal remedies, including demand, suit, judgement, and exhaustion of all supplementary proceedings
• a guarantor of collectability has the right to require a creditor to first proceed against the debtor