A subsurety is an individual who assumes the responsibility of repaying money or fulfiling obligations in case the original person fails to do so. It serves as a contingency plan for unforeseen circumstances.
A subsurety is a person or entity that offers a pledge to repay a debt if the primary surety is unable to do so. For instance, a contractor seeking bonding for a construction project may need to furnish a surety bond. The surety company may demand a subsurety to also provide a pledge in the event of the contractor’s default on the bond. Similarly, in a lease agreement, the landlord may require a surety bond from the tenant, and the surety company may require a subsurety to offer an extra guarantee. These instances demonstrate how a subsurety serves as a backup to the primary surety, providing an additional layer of security for the party seeking the pledge.
Subsurety refers to a situation where a third party agrees to guarantee the obligations of a surety in a contract or bond.
A surety is the party that guarantees the obligations of another party in a contract or bond, while a subsurety is a third party that guarantees the obligations of the surety.
A subsurety may be required in situations where the original surety does not have sufficient financial resources or creditworthiness to fulfill their obligations. It provides an additional layer of security for the party relying on the surety.
Yes, a subsurety can be held liable for the obligations of the surety if the surety fails to fulfill their obligations. The subsurety essentially steps into the shoes of the surety and assumes their responsibilities.
In some cases, a subsurety may be released from their obligations if there is a valid agreement or provision in the contract or bond that allows for such release. However, this would typically require the consent of all parties involved.
If the subsurety fails to fulfill their obligations, the party relying on the subsurety may have legal recourse to seek damages or other remedies. This would depend on the specific terms of the contract or bond and applicable laws.
In general, a subsurety cannot transfer their obligations to another party without the consent of all parties involved. Any transfer of obligations would need to be agreed upon and documented in a legally binding manner.
The liability of a subsurety is typically limited to the obligations of the surety. However, if the subsurety is found to have acted negligently or breached their duties, they may be held liable for damages caused by the principal party.
The release of a subsurety from their obligations due to the insolvency of the surety would depend on the specific terms of the contract or bond. It is possible that the contract or bond may provide for such release in such circumstances.
Generally, a subsurety is not held liable for the actions of the principal party. Their liability is limited to the obligations of the surety. However, there may be exceptions to this rule depending on the specific circumstances and applicable laws.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 16th April 2024.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
- Page URL:https://dlssolicitors.com/define/subsurety/
- Modern Language Association (MLA):Subsurety. dlssolicitors.com. DLS Solicitors. May 09 2024 https://dlssolicitors.com/define/subsurety/.
- Chicago Manual of Style (CMS):Subsurety. dlssolicitors.com. DLS Solicitors. https://dlssolicitors.com/define/subsurety/ (accessed: May 09 2024).
- American Psychological Association (APA):Subsurety. dlssolicitors.com. Retrieved May 09 2024, from dlssolicitors.com website: https://dlssolicitors.com/define/subsurety/
Our team of professionals are based in Alderley Edge, Cheshire. We offer clear, specialist legal advice in all matters relating to Family Law, Wills, Trusts, Probate, Lasting Power of Attorney and Court of Protection.
All author posts