Question 1 (20 Marks) -Commercial law
Mrs Solly signed as a surety for her nephew that wanted to start a
panel beating company. Mrs Solly’s nephew has being lying about his
business doing poorly and continuously borrows money from Mrs
Solly. Due to this lie, Mrs Solly does not want to fulfil her
obligations in terms of the Suretyship Agreement. Legally advise
Mrs Solly on the following:
1.1 The nature of a Surety Agreement (5 marks)
1.2 The benefits available to a Surety (10 marks)
1.3 The various ways in which a Surety Agreements may be terminated
(5 marks)
Answers:
If the principal debtor is aware that his debt is going to become due & starts disposing his properties in order to prevent the surety from seizing the surety can compel the principal to settle the debt & release him from the obligation to make the debt payment.
Question 1 (20 Marks) -Commercial law Mrs Solly signed as a surety for her nephew that...
Mrs Solly signed as a surety for her nephew that wanted to start a panel beating company.Mrs Solly’s nephew has being lying about his business doing poorly and continuously borrowsmoney from Mrs Solly. Due to this lie, Mrs Solly does not want to fulfil her obligations in terms of the Suretyship Agreement. Legally advise Mrs Solly on the following: 1.1 The nature of a Surety Agreement 1.2 The benefits available to a Surety 1.3 The various ways in which a...