Question

Which of the following is correct?
1 A contract of suretyship will be void if it is not
signed by or on behalf of the principal debtor.
2 A contract of suretyship will be void if it is not
signed by or on behalf of the surety.
3 A contract of suretyship may be terminated only
I n writing.
4 A surety may rely on personal defenses, which
may be at the disposal of the principal

Answer 1

Which of the surety’s common law privileges may be
specifically excluded by agreement between the parties
to the contract?
1 The benefit of excussion, division, and cession
of action
2 Only the benefit of division
3 Only the benefit of excussion and the benefit of
division
4 Only the benefit of excussion
5 Only the benefit of cession of actions

Answer 2

1. A contract of suretyship will be void if it is not signed by or on behalf of the principal debtor.

This statement is correct. In a contract of suretyship, it is necessary for the contract to be signed by or on behalf of the principal debtor in order for it to be valid. The surety alone signing the contract would not be sufficient.

Answer 3

1. The benefit of excussion, division, and cession of action.

This statement is correct. In a contract of suretyship, the parties have the ability to specifically exclude certain common law privileges of the surety. The benefit of excussion, division, and cession of action are all privileges that can be excluded by agreement between the parties.