Glossary

Surety

An individual or corporation that guarantees the performance or actions of another. A surety , as a general rule, is a party to the original contract of the principal, he signs his name to the original agreement at the same time the principal signs, and the consideration for the principal’s contract is the consideration for the agreement of the surety’s. The surety is therefore bound on his contract from the very beginning, and he is bound also to inform himself of the defaults of the principal debtor, and he is not in any part relieved from his obligations under the contract by the creditor’s failure to inform him of the principal’s default in the contract, for which contract the surety has become the security for.
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