Legal Dictionary of Pakistan
Quick lookup for English, Urdu, and Latin legal terms used in Pakistani jurisprudence.
Cosurety
A surety who shares the cost of performing suretyship obligations with another. See SURETY.
Subsurety
A person whose undertaking is given as additional security, usu. conditioned not only on nonperformance by the principal but also on nonperformance by an earlier promisor as well; a surety with the lesser liability in a subsuretyship.
Subsuretyship
The relation between two (or more) sureties, in which a principal surety bears the burden of the whole performance that is due from both sureties; a relationship in which one surety acts as a surety for another.
Surety
1. A person who is primarily liable for the payment of another's debt or the performance of another's obligation.( Although a surety is similar to an insurer, one important difference is that a surety often receives no compensation for assuming liability. A surety differs from a guarantor, who is liable to the creditor only if the debtor does not meet the duties owed to the creditor; the surety is directly liable. Cf. GUARANTOR. "The words surety and guarantor are often used indiscriminately as synonymous terms; but while a surety and a guarantor have this in common, that they are both bound for another person, yet there are points of difference between them which should be carefully noted. A surety is usually bound with his principal by the same instrument, executed at the same time and on the same consideration. He is an original promisor and debtor from the beginning, and is held ordinarily to know every default of this principal. Usually the surety will not be discharged, either by the mere indulgence of the creditor to the principal, or by want of notice of the default of the principal, no matter how much he may be injured thereby. On the other hand, the contract of the guarantor is his own separate undertaking, in which the principal does not join. It is usually entered into before or after that of the principal, and is often founded on a separate consideration from that supporting the contract of the principal." 1 George W. Brandt, The Law of Suretyship and Guaranty ยง 2, at 9 (3d ed. 1905). "A surety, in the broad sense, is one who is liable for the debt or obligation of another, whether primarily or secondarily, conditionally or unconditionally. In other words, the term surety includes anyone who is bound on an obligation which, as between himself and another person who is bound to the obligee for the same performance, the latter obligor should discharge. In this sense, suretyship includes all accessorial obligations. By such terminology, guarantors and indorsers are kinds of sureties .... A surety, in the narrow sense, is one who is liable in form primarily on the debt or obligation of another. His obligation is accessorial to that of the principal debtor, but it is direct and not conditioned on the principal debtor's default. In this sense, suretyship differs from guaranty and indorsement, which are conditional, secondary obligations The word surety is in the majority of American decisions used in the narrower sense to indicate a primary obligation to pay another's debt, to distinguish it from the secondary obligation of a guarantor. This terminology has the advantage of indicating by the use of the one word
Suretyship
1. The legal relation that arises when one party assumes liability for a debt, default, or other failing of a second party. 9 The liability of both parties begins simultaneously. In other words, under a contract of suretyship, a surety becomes a party to the principal obligation. 2. The lending of credit to aid a principal who does not have sufficient credit. 0 The purpose is to guard against loss if the principal debtor were to default. 3. The position or status of a surety.
accommodation surety
See voluntary surety.
accommodation surety.
See voluntary surety under SURETY.
commercial surety.
See compensated surety under SURETY.
compensated surety
A surety who is paid for becoming obliged to the creditor. ( A bonding company is a typical example of a compensated surety. - Also termed commercial surety. cosurety. See COSURETY.
gratuitous surety
A surety who is not compensated for becoming obliged to the creditor. ( Perhaps the most common example is the parent who signs as a surety for a child. subsurety. See SUBSURETY.
gratuitous surety.
See SURETY.
involuntary suretyship
A suretyship that arises incidentally, when the chief object of the contract is to accomplish some other purpose.
personal suretyship
A suretyship in which the surety is answerable in damages.
real suretyship
A suretyship in which specified property can be taken, but the surety is not answerable in damages.
supplemental surety
A surety for a surety.
surety and fidelity insurance
See fidelity insurance.
surety bond
See BOND (2).
surety company
A company authorized to engage in the business of entering into guaranty and suretyship contracts and acting as a surety on bonds, esp. bail, fidelity, and judicial bonds. - Also termed guaranty company.
surety insurance
See guaranty insurance.
surety of the peace
Hist. A surety responsible for ensuring that a person will not commit a future offense. ( It is required of one against whom there are probable grounds to suspect future misbehavior. See SUPPLICAVIT.
suretyship by operation of law
A suretyship that the law creates when a third party promises a debtor to assume and pay the debt that the debtor owes to a creditor.
voluntary surety
A surety who receives no consideration for the promise to act as a surety. - Also termed accommodation surety. 2. A formal assurance; esp., a pledge, bond, guarantee, or security given for the fulfillment of an undertaking.
voluntary suretyship
See SURETYSHIP.