A surety bond is the contract by which a guarantor undertakes to the creditor to pay the debtor’s debt in the event of the latter’s default. It can be taken out at the request of the principal debtor or without any request on his part and even without his knowledge.
When the law subordinates the exercise of a right to the provision of security, it is said to be legal. Where the law confers on the judge the power to make the satisfaction of a claim subject to the provision of security, it is said to be judicial.
Guarantees may be simple or joint and several. Joint and several liability may be stipulated between the guarantor and the principal debtor, between the guarantors, or between them all.
A person may act as surety for the creditor on behalf of the person who guaranteed the principal debtor.
A sub-guarantee is a contract by which a person undertakes to pay the guarantor what the debtor may owe him under the guarantee. .
A surety bond may guarantee one or more present or future, definite or determinable obligations.
Guarantees can only exist on a valid obligation. Nevertheless, a person who stands surety for a natural person whom he knew did not have the capacity to contract is bound by his undertaking.
The guarantee must be express. It may not be extended beyond the limits within which it was contracted.
Unless otherwise stipulated, the guarantee extends to interest and other accessories to the guaranteed obligation, as well as the costs of the first demand, and to all those subsequent to the denunciation made to the guarantor.
The guarantee may not exceed what is owed by the debtor nor be contracted under more onerous conditions, on pain of being reduced to the extent of the obligation guaranteed. It may be contracted for part of the debt only and under less onerous conditions.
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is a Registered Trademark of
PETROFF LAW FIRM (SELARL LEGASTRAT)
182, rue de Rivoli
75001, Paris France
RCS Paris n°814433470
Paris Bar Registration n° (Toque) C2396
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is a Registered Trademark of
PETROFF LAW FIRM (SELARL LEGASTRAT)
182, rue de Rivoli
75001, Paris France
RCS Paris n°814433470
Paris Bar Registration n° (Toque) C2396
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