This preview shows page 1. Sign up to view the full content.
Unformatted text preview: the performance of a duty owed to the creditor by the principal debtor, upon the principal debtor's failure to perform. the s Principal Debtor – the party primarily liable on the obligation. liable
s Suretyship Relationship Suretyship
C vs. PD: C’s rights under contract Collateral Principal Debtor
S vs. PD: Exoneration Reimbursement Subrogation Creditor C vs. S: C’s rights under contract Collateral Surety Types of Sureties Types
Cosurety – each of two or more sureties who are liable for the same debt of the principal debtor. debt s Absolute Surety – surety liable to a creditor immediately upon the default of a principal debtor. principal s Conditional Guarantor of Collection – surety liable to a creditor only after the creditor has exhausted the legal remedies against the principal debtor. remedies
s Rights of Surety Rights
s s s s Exoneration – the right to be relieved of his obligation to the creditor by having the principal debtor perform the obligation. principal Reimbursement – the right to be repaid by the principal debtor. the...
View Full Document
This note was uploaded on 10/25/2009 for the course LAW 100 taught by Professor Liu during the Spring '09 term at Zhejiang University.
- Spring '09