In October 2025 the High Court granted default judgment against a surety after neither the surety nor her attorney appeared for the scheduled trial, finding that the surety’s dilatory conduct and her attorney’s failure to manage the case offered no justification to delay finalisation. The court emphasised that attorneys are officers of the court and
An August US case has highlighted some important considerations when a surety, who may be a co-surety with others, pays the principal debt in full and seeks to recover its outlay. The court mentioned that here are few doctrines better established than that a surety who pays the debt of another is entitled to all
In August 2025, the Constitutional Court clarified a point in trust law that a decision taken at a quorate trust meeting will bind a trust even when a trustee does not attend the meeting despite receipt of reasonable notice. There is no need for a unanimous resolution and joint action by all trustees at meetings
This blog was co-authored by Adriaan Lourens, a Candidate Attorney.
In a May 2025 High Court judgment, the court held that, in the absence of a contractual provision expressly requiring written termination, an oral termination of a suretyship agreement is legally valid. This judgment provides useful guidance on the distinction between the formation and cancellation
In an April 2025 judgment, the High Court concluded that the defendant’s liability as a surety was not discharged by the release of the principal debtor under a business rescue plan (BR Plan). The BR Plan and the deed of suretyship were both clearly drafted to preserve the creditor’s right to claim from the surety.
This blog was co-authored by Adrienne Hendricks, Trainee Associate and Adriaan Lourens, Candidate Attorney.
In April 2025 the High Court dealt with a bank’s claim for payment of R15 million, plus interest and costs, brought against the surety of a company. The company, as principal debtor, had concluded a loan agreement with the bank but
In April 2025, the High Court ruled in favour of a bank in a monetary claim against two sureties. The court rejected the deceitful defences raised by the sureties regarding signature of the suretyship and made useful findings regarding video and other evidence of the signing.
The debtor breached the terms of its facility and
The court in Firstrand Bank Limited v Barreiro reconfirmed that there is no general ‘prejudice principle’ which holds that a debtor or surety is released from their obligations to a creditor if the creditor does anything that prejudices them. The court reiterated that a surety can be released, either wholly or in part, from their
The respondent in Airports Company SA Limited v Masiphuze Trading (Pty) Ltd was unsuccessful in relying on the defence of justifiable error in trying to avoid being bound by a suretyship agreement that he signed but did not read.
The respondent entered into a suretyship for a lease debt in respect of premises at the
The service of a summons on one surety does not interrupt the running of prescription in favour of a co-surety. Although the surety undertakes to be liable if the principal debtor does not pay the debt, the surety does not become a co-debtor with the principal debtor, nor does the surety become a co-debtor with