Mrs Solly signed as a surety for her nephew that wanted to start a panel beating...

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Accounting

Mrs Solly signed as a surety for her nephew that wanted to starta panel beating company. Mrs Sollyâ€™s nephew has being lying abouthis business doing poorly and continuously borrows money from MrsSolly. Due to this lie, Mrs Solly does not want to fulfil herobligations in terms of the Suretyship Agreement. Legally adviseMrs 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 Surety Agreements may beterminated

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A surety ship requires the principal debtor to whom the surety is bound by way of ancillary obligation of segregate identity from obligation between the debtor creditor The surety ship don bind the surety to the creditor Inasmuch as the latter is vested with the right to proceed against the former to collect the credit in lieu of proceeding against the principal debtor for the same obligation At the same time there is also a legal tie created between the surety and the principal debtor to which the credit or is not privy or party to The minute the surety fully answers to the See Answer

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