In force2023 Revised EditionCurrent version · 2023 Revised EditionSee versions on Attorney General's Chambers(opens the publisher’s site)
Contracts Act · 2023 Revised Edition · Part · Indemnity and Guarantee
Contracts Act · 2023 Revised Edition · Part · Indemnity and Guarantee
Official textFrom Attorney General's Chambers, unchanged
Any guarantee which the creditor has obtained by means of keeping silence as to material circumstances is invalid.
Illustrations
A engages B as clerk to collect money for him. B fails to account for some of his receipts and A in consequence calls upon him to furnish security for his duly accounting.
C gives his guarantee for B’s duly accounting. A does not acquaint C with B’s previous conduct. B afterwards makes default. The guarantee is invalid.
A guarantees to C payment for iron to be supplied by him to B to the amount of 2,000 tons. B and C have privately agreed that B should pay $5 per ton beyond the market price, such excess to be applied in liquidation of an old debt. The agreement is concealed from A. A is not liable as a surety.
surety
“surety” means a person referred to as a surety, or as a guarantor, or by any other corresponding term, in a scholarship agreement.
surety
“surety” means a person referred to as a surety, or as a guarantor, or by any other corresponding term, in a scholarship agreement.