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
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
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