Proving prejudice not sufficient for surety to escape liability

By Aslam Moosajee (ZA) on November 18, 2015 Posted in Banking

Prejudice to a surety will only release the surety from liability if the prejudice is the result of a breach of a legal duty or obligation owed by the creditor. The primary sources of a creditor’s duties and obligations are the principal agreement and the suretyship. If the prejudice complained of results from conduct falling … Continue reading

Surety can relate to only one of many divisions of a company

By Patrick Bracher (ZA) on September 7, 2015 Posted in General

A company operated through a number of divisions each with its own trade name. An agreement of suretyship was signed headed “Deed of Suretyship – Tuning Fork (Pty) Limited t/a After Market Products”. The company, Tuning Fork (Pty) Limited, alleged that the appellant surety was liable for debts owing to other divisions of the principal … Continue reading

Guarantees and suretyships may be guarantee policies and therefore unlawful

By Patrick Bracher (ZA) on May 22, 2015 Posted in Insurance

A surety does not usually operate a business providing security at a price nicely determined according to the assessed likelihood of the risk occurring. That is what insurers do. Fusion Underwriting Guarantees Agency provided suretyships, called guarantees, as performance guarantees to contractors performing work on behalf of employer municipalities. Before doing so Fusion required a … Continue reading