82,980
edits
Surety: Difference between revisions
no edit summary
Amwelladmin (talk | contribs) No edit summary |
Amwelladmin (talk | contribs) No edit summary |
||
| Line 11: | Line 11: | ||
{{quote|The differences between the two are important. With a suretyship guarantee, equity will intervene to protect a guarantor in some circumstances (for example, if the underlying contractual obligations which it has guaranteed have been increased without the guarantor’s consent). A surety’s obligations are also secondary: the beneficiary of the guarantee must first establish the main obligor’s liability and default. With a [[demand guarantee]] payment is only conditional on the beneficiary serving a demand in the required form (although this can be made conditional on an event happening). Normally, demand guarantees are not subject to the equitable defences that a suretyship guarantee is.}} | {{quote|The differences between the two are important. With a suretyship guarantee, equity will intervene to protect a guarantor in some circumstances (for example, if the underlying contractual obligations which it has guaranteed have been increased without the guarantor’s consent). A surety’s obligations are also secondary: the beneficiary of the guarantee must first establish the main obligor’s liability and default. With a [[demand guarantee]] payment is only conditional on the beneficiary serving a demand in the required form (although this can be made conditional on an event happening). Normally, demand guarantees are not subject to the equitable defences that a suretyship guarantee is.}} | ||
Our conclusion? Anything meant in a document by surety — one person’s acceptance of another’s liabilities to a third person — can comfortably be captured by the word “guarantee”. | |||
We have no doubt others, down there in the weeds, will differ: but if the prolific thought-pieces pressed to the ear of the internet are anything to go by — of which our own humble offering is but the latest — it won’t be on any strong principle. | |||
{{sa}} | {{sa}} | ||
{{ref}} | {{ref}} | ||