Suretyship
/ˈʃʊərtiʃɪp/
Definitions
- (n.) A contractual obligation whereby a third party (surety) undertakes responsibility to fulfill the principal's duty if the principal fails to do so.
The suretyship agreement guaranteed payment of the debt if the borrower defaulted.
Forms
- suretyships
Related terms
See also
Commentary
Suretyship involves a tripartite contractual relationship distinct from simple guarantees, often requiring the surety’s explicit consent and separate liability.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.