One of the main concerns of creditors is to ensure that they have security against any amount they lend. Any such form of security should meet the legal requirements for it to be valid and enforceable. This article focuses on one such security in the form of suretyship. A contract of suretyship can be defined as an agreement where one person (the surety) undertakes to the creditor of another (principal debtor) that if the principal debtor fails to perform the 1 CACGB-203-21: judgment rendered on 4th February 2022 (yet to be reported) principal obligation, the surety will perform it or, failing that, indemnify the creditor.
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