1. Right of subrogation: After paying the guaranteed debt, the surety steps into the shoes of the creditor and acquires all the rights which the latter had against the principal debtor (i.e., he gets subrogated to all the rights and remedies available to the creditor) (Sec. 140). If the creditor has the right to stop goods in transit or has a lien, the surety, on payment of all he is liable for, will be entitled to exercise these rights.
2. Right as to securities with the creditor: The surety has the right to proceed against such securities of the principal debtor, as the creditor could himself proceed.
3. Right of indemnity: The surety is entitled to be indemnified by the principal debtor for all payments rightfully made by him (Sec. 145).
4. Compel the principal debtor to perform the promise: The surety has also the right to insist the principal debtor to perform the promise. The surety can, before making payment, compel the debtor to relieve him from liability by paying of the debt, provided that liability is an ascertained and subsisting one.
5. Prove the debt in case of bankruptcy of the debtor: In case of the bankruptcy of the principal debtor, the surety may prove the debt in respect of contingent ability even if he has not been called upon to pay a definite amount.
2. Right as to securities with the creditor: The surety has the right to proceed against such securities of the principal debtor, as the creditor could himself proceed.
3. Right of indemnity: The surety is entitled to be indemnified by the principal debtor for all payments rightfully made by him (Sec. 145).
4. Compel the principal debtor to perform the promise: The surety has also the right to insist the principal debtor to perform the promise. The surety can, before making payment, compel the debtor to relieve him from liability by paying of the debt, provided that liability is an ascertained and subsisting one.
5. Prove the debt in case of bankruptcy of the debtor: In case of the bankruptcy of the principal debtor, the surety may prove the debt in respect of contingent ability even if he has not been called upon to pay a definite amount.
0 comments:
Post a Comment