TYPES OF SURETYSHIP AGREEMENT
There are 5 types of suretyship contract. The type of suretyship changes as the time when the creditor applies to the surety or the number of sureties changes. This contract is divided into five different types as listed below. Let us examine these types of contracts:
Ordinary suretyship contract is regulated under Article 585 of the TCO. In ordinary suretyship, the creditor cannot pursue the surety unless the debtor applies; however, there are exceptions to this.
The contract of joint suretyship is regulated under Article 586 of the TCO. The creditor may pursue the surety without pursuing the debtor, or without monetising the pledge of immovable property.
Joint suretyship agreement is regulated under Article 587 of the TCO. If more than one person jointly sureties the same debt, each of them shall be liable for his/her share as an ordinary surety, and for the share of the others as a surety surety.
The surety surety and recourse surety agreements are regulated under Article 588 of the TCO. The surety who guarantees the creditor for the surety’s debt, together with the surety, is liable like an ordinary surety.
The recourse surety is also regulated under Article 588 of the TCO. A recourse surety is a surety who provides security for the surety’s recourse receivable from the debtor.
You can access our other article examples and petition examples by clicking