Question 4
S buys a car for R 20 000 from J. S’s friend, Lebo, enters into a
contract of suretyship with J to secure S’s debt for the amount
of R 10 000.
Which ONE of the following statements is correct?
1. The contract between J & L will only be valid if it is in
writing and signed by or on behalf of the surety.
2. L has bound herself as surety for S’s debt and is therefore
liable for the total amount of the outstanding balance.
3. The contract between J and L is not binding since S was
not a party to it and he does not know of its existenc
1 answer
2. L has bound herself as surety for S’s debt and is therefore liable for the total amount of the outstanding balance.
1 answer