Suretyship. Personal Security. Suretyship. Contract in terms of which a third party (surety or co-sureties) binds herself to the creditor for the performance of the whole or part of the debt of another – principal debtor. Nature of Suretyship. Valid principal obligation (debt)
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b) Benefits of division – beneficium divisionis
c) Benefit of cession of actions – beneficium cedendarum actionum
d) Recourse against co-sureties
e) Recourse against principal debtor
b) Where the original suretyship contract is, without surety’s consent, materially altered to surety’s prejudice, which prejudice is the result of the breach, eg when the principal debtor who subsequently becomes insolvent.
c) If the suretyship contract between surety & principal creditor is terminated in any of the ordinary ways of terminating an obligation or prescription, surety is released even though the principal debt still exist.