suretyship

A contractual relation, resulting from a primary, original, absolute, and unconditional engagement, whereby one person, the surety, engages to be answerable for the debt, default, or miscarriage of another, the principal. Madison County Farmers Asso. v American Employers' Ins. Co. (CA8 Ark) 209 F2d 581, 42 ALR2d 1153; Welch v Walsh, 177 Mass 555, 59 NE 440. While the contract of a surety is, in a sense, accessory or collateral to a valid principal obligation contracted by another person, either contemporaneously or previously, his obligation to the creditor or promisee of the principal is direct, primary, and absolute. 50 Am J1st Suret § 2. It is the essence of the contract that there be a subsisting valid obligation of a principal debt. Without a principal there can be no surety. First Nat. Bank v Boxley, 129 Okla 159, 264 P 184, 64 ALR 588. The vital difference between the contract of a surety and that of a guarantor is that a surety is charged as an original promisor, while the engagement of the guarantor is a collateral undertaking. A surety is a party to the principal obligation, undertaking together with the principal debtor that it shall be performed, while the guarantor is not a party to the principal obligation. 24 Am J1st Guar § 11.

Ballentine's law dictionary. . 1998.

Look at other dictionaries:

  • SURETYSHIP — (Heb. עַרְבוּת), one person s undertaking to fulfill the obligation of another toward a third person (called the arev, ḥayyav, and nosheh, respectively). In Jewish law fulfillment of an obligation is secured primarily through the assets of the… …   Encyclopedia of Judaism

  • Suretyship — Sure ty*ship, n. The state of being surety; the obligation of a person to answer for the debt, default, or miscarriage of another. Bouvier. [1913 Webster] …   The Collaborative International Dictionary of English

  • suretyship — sure·ty·ship n: the contractual relationship in which a surety engages to answer for the debt or default of a principal to a third party Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary

  • suretyship — The relationship among three parties whereby one person (the surety) guarantees payment of a debtor s debt owed to a creditor or acts as a co debtor. Generally speaking, the relation which exists where one person has undertaken an obligation and… …   Black's law dictionary

  • suretyship — noun /ˈʃʊəɹɪtiːʃɪp,ˈʃɔːɹətiːʃɪp/ An accessory agreement through which a person binds themselves for another already bound, either in whole or in part, as for their debt, default or miscarriage; the assumption of liability for the obligations of… …   Wiktionary

  • suretyship — noun see surety …   New Collegiate Dictionary

  • suretyship — /shoor i tee ship , shoor tee , sherr i tee , sherr tee /, n. Law. the relationship between the surety, the principal debtor, and the creditor. [1525 35; SURETY + SHIP] * * * …   Universalium

  • suretyship — n. responsibility of the guarantor to pay the debts of the principal debtor (Law)sure·ty·ship || ʃʊrÉ™tɪʃɪp / ʃʊə …   English contemporary dictionary

  • suretyship — sure·ty·ship …   English syllables

  • suretyship — /ˈʃɔrətiˌʃɪp/ (say shawruhtee.ship), /ˈʃurə / (say shoohruh ) noun the relationship between the surety, the principal debtor, and the creditor …   Australian English dictionary

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