Suretyship: Intro, Creation, & Types

Question 1

Guarantor/Surety

Answer 1

Someone who agrees to stand liable for a debt of another.
Can be in addition to any collateral.
3 Parties:
- Creditor, debtor, guarantor/surety
Generally can recover against surety/guarantor first, unless “guarantor of collection”
Generally exam uses surety unless discussing “guarantor of collection”

Question 2

Guarantor/Surety

Creation

Answer 2

• Writing and signed by surety
• Consideration NOT required
• Multiple suretys:
  
  • Sub surety: tertiarily liable
  • Co-sureties:
    
    • Liable for full amount
    • Liable for % of debt
    • If one pays in full, others are liable based on % (if only 2, up to 50%)