100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Summary Commercial Law (KRG) 120 Suretyship Chapters 27-29 R60,00
Add to cart
Quickly navigate to
Preview
  2.  
  3. University Of Pretoria (UP)
  4.  
  5. KRG 120 (KRG120)

Summary

Summary Commercial Law (KRG) 120 Suretyship Chapters 27-29
 0 purchase

In depth summary of Suretyship (Chapters 27-29) in the commercial law 5th edition nagel et al textbook for KRG 120. Includes graphical explanations, a glossary of latin terms applicable and extensive examples to help understand concepts.

Preview 2 out of 13  pages

Document information

  • November 6, 2019
  • 13
  • 2018/2019
  • Summary

Subjects

Written for

All documents for this subject (44)

Seller

avatar-seller
NadiaSantosuosso

Reviews received

Content preview

CHAPTER 27
SURETYSHIP
DEFINITION:


A contract where a 3rd party (called a surety/co-surety) binds themselves to a creditor (called the principal
creditor) for the proper performance of the whole or part of the debt of another (principal debtor).




princial
creditor
n
tio




Ob
liga




liga
Ob




tio
n




princial
surety
debtor
Payment/reimbursement




GENERAL INTRODUCTION


* A debt relationship/obligation (between debtor & creditor) can be created through delict, a
contract, negotiorum gestio or enrichment
* Creditor may demand for a debtor to have security in order to protect himself if the debtor
cannot pay
* Suretyship = said to be of an accessory nature
o This means for the security to exist the debtor HAS to owe the creditor money
o Means – when the debt is paid the suretyship will end too

, NATURE OF THE SURETY CONTRACT

Þ The debt between the debtor and creditor DOES NOT have to exist at the time of conclusion of
contract (can be before the debtor owes the creditor anything)
Þ Suretyship involves at least 3 parties
o This fact makes it different from other contracts of indemnity (e.g. guarantees, indemnity
or insurance)
§ Guarantee: one person says to another that the price of a certain good he is purchasing will not
All only have 2
increase for a certain period
parties involved
§ Indemnity: where one person tells another, he will compensate them against any damages
§ Insurance: insurer will compensate damages

Þ Delegation (where debtor delegates his liability to another person and 1st debtor has no more
liability) ¹ Suretyship
Þ Co-debtor ship (where 2 debtors are jointly & severally liable for a debt) ¹ Suretyship


Þ What happens when a person is a co-debtor & a surety at
the same time?
o The surety/co-debtor is jointly & severally liable with the principal debtor for the debt
once it becomes payable (creditor can claim from surety/co-debtor first if they want)


o This is different from when the person is only a surety - since a surety only becomes
liable once the debtor has been excused Excused?
Excuse means to relieve from a duty or obligation.
What does h




In surety it means a surety is only liable AFTER a
repayment
o This is also different from when the person is creditor has tried to get payment from the principal
consist of? debtor
only a co-debtor – since the surety/co-debtor
Can be the original
can claim repayment against the principal debtor
claim OR ceded
action § If the person was only a co-debtor, they CANNOT reclaim payment from the
principal debtor
o Liability of a person bound as a surety and co-debtor = not contingent unless principal debt
was also contingent




2

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying this summary from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller NadiaSantosuosso. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy this summary for R60,00. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

69252 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy summaries for 15 years now

Start selling
R60,00
  • (0)
Add to cart
Added