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8 Cards in this Set
- Front
- Back
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Why does a creditor need security? |
To protect himself against the possibilities of a debtor being unable to pay |
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Types of securities |
Personal Security and Real Security |
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Personal Security |
-Person binds himself contractually to perform -The creditor obtains a mere additional personal right -The principal debtor or the 3rd party might not be able to repay the debt |
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Nature of Suretyship |
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Surety and Co-principal debtor |
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Formation of suretyship contract |
-Mention the identities of the parties
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Define : Suretyship |
Contract in terms of which a third party (surety or cosureties) binds himself/herself to the creditor for the performance of the whole or a part of the debt of another- principal debtor |
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Consequences of Suretyship |
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