What is the difference between a surety and guarantor?
One of the key factors to note about the concept of surety, is that in a suretyship agreement, the representing surety will have no rights against the creditor. Thus, if the debtor defaults on a loan, the creditor will have the right to demand payment from the surety. In order for a suretyship agreement to be considered legally sufficient, consideration will be required for it to be enforceable.
Below is an example of a surety and guarantor:
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