| 1. Indemnity contract | - Relationship whereby one person agrees to answer for the debt or default of another.
- Requires certain contracts to be in writing to be enforceable.
- Jointly and severally liable to creditor.
- Promises to pay debt on default of principal debtor.
- One party promises to reimburse debtor for payment of debt or loss if it arises.
- Receives intended benefits of a contract.
- Right of surety to require the debtor to pay before surety pays.
- Upon payment of more than his/her proportionate share, each cosurety may compel other cosureties to pay their shares.
- Upon payment of debt, surety may recover payment from debtor.
- Upon payment, surety obtains same rights against debtor that creditor had.
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| 2. Suretyship contract | - Relationship whereby one person agrees to answer for the debt or default of another.
- Requires certain contracts to be in writing to be enforceable.
- Jointly and severally liable to creditor.
- Promises to pay debt on default of principal debtor.
- One party promises to reimburse debtor for payment of debt or loss if it arises.
- Receives intended benefits of a contract.
- Right of surety to require the debtor to pay before surety pays.
- Upon payment of more than his/her proportionate share, each cosurety may compel other cosureties to pay their shares.
- Upon payment of debt, surety may recover payment from debtor.
- Upon payment, surety obtains same rights against debtor that creditor had.
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| 3. Surety | - Relationship whereby one person agrees to answer for the debt or default of another.
- Requires certain contracts to be in writing to be enforceable.
- Jointly and severally liable to creditor.
- Promises to pay debt on default of principal debtor.
- One party promises to reimburse debtor for payment of debt or loss if it arises.
- Receives intended benefits of a contract.
- Right of surety to require the debtor to pay before surety pays.
- Upon payment of more than his/her proportionate share, each cosurety may compel other cosureties to pay their shares.
- Upon payment of debt, surety may recover payment from debtor.
- Upon payment, surety obtains same rights against debtor that creditor had.
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| 4. Third-party beneficiary | - Relationship whereby one person agrees to answer for the debt or default of another.
- Requires certain contracts to be in writing to be enforceable.
- Jointly and severally liable to creditor.
- Promises to pay debt on default of principal debtor.
- One party promises to reimburse debtor for payment of debt or loss if it arises.
- Receives intended benefits of a contract.
- Right of surety to require the debtor to pay before surety pays.
- Upon payment of more than his/her proportionate share, each cosurety may compel other cosureties to pay their shares.
- Upon payment of debt, surety may recover payment from debtor.
- Upon payment, surety obtains same rights against debtor that creditor had.
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| 5. Cosurety | - Relationship whereby one person agrees to answer for the debt or default of another.
- Requires certain contracts to be in writing to be enforceable.
- Jointly and severally liable to creditor.
- Promises to pay debt on default of principal debtor.
- One party promises to reimburse debtor for payment of debt or loss if it arises.
- Receives intended benefits of a contract.
- Right of surety to require the debtor to pay before surety pays.
- Upon payment of more than his/her proportionate share, each cosurety may compel other cosureties to pay their shares.
- Upon payment of debt, surety may recover payment from debtor.
- Upon payment, surety obtains same rights against debtor that creditor had.
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| 6. Statute of Frauds | - Relationship whereby one person agrees to answer for the debt or default of another.
- Requires certain contracts to be in writing to be enforceable.
- Jointly and severally liable to creditor.
- Promises to pay debt on default of principal debtor.
- One party promises to reimburse debtor for payment of debt or loss if it arises.
- Receives intended benefits of a contract.
- Right of surety to require the debtor to pay before surety pays.
- Upon payment of more than his/her proportionate share, each cosurety may compel other cosureties to pay their shares.
- Upon payment of debt, surety may recover payment from debtor.
- Upon payment, surety obtains same rights against debtor that creditor had.
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| 7. Right of contribution | - Relationship whereby one person agrees to answer for the debt or default of another.
- Requires certain contracts to be in writing to be enforceable.
- Jointly and severally liable to creditor.
- Promises to pay debt on default of principal debtor.
- One party promises to reimburse debtor for payment of debt or loss if it arises.
- Receives intended benefits of a contract.
- Right of surety to require the debtor to pay before surety pays.
- Upon payment of more than his/her proportionate share, each cosurety may compel other cosureties to pay their shares.
- Upon payment of debt, surety may recover payment from debtor.
- Upon payment, surety obtains same rights against debtor that creditor had.
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| 8. Reimbursement | - Relationship whereby one person agrees to answer for the debt or default of another.
- Requires certain contracts to be in writing to be enforceable.
- Jointly and severally liable to creditor.
- Promises to pay debt on default of principal debtor.
- One party promises to reimburse debtor for payment of debt or loss if it arises.
- Receives intended benefits of a contract.
- Right of surety to require the debtor to pay before surety pays.
- Upon payment of more than his/her proportionate share, each cosurety may compel other cosureties to pay their shares.
- Upon payment of debt, surety may recover payment from debtor.
- Upon payment, surety obtains same rights against debtor that creditor had.
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| 9. Subrogation | - Relationship whereby one person agrees to answer for the debt or default of another.
- Requires certain contracts to be in writing to be enforceable.
- Jointly and severally liable to creditor.
- Promises to pay debt on default of principal debtor.
- One party promises to reimburse debtor for payment of debt or loss if it arises.
- Receives intended benefits of a contract.
- Right of surety to require the debtor to pay before surety pays.
- Upon payment of more than his/her proportionate share, each cosurety may compel other cosureties to pay their shares.
- Upon payment of debt, surety may recover payment from debtor.
- Upon payment, surety obtains same rights against debtor that creditor had.
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| 10. Exoneration | - Relationship whereby one person agrees to answer for the debt or default of another.
- Requires certain contracts to be in writing to be enforceable.
- Jointly and severally liable to creditor.
- Promises to pay debt on default of principal debtor.
- One party promises to reimburse debtor for payment of debt or loss if it arises.
- Receives intended benefits of a contract.
- Right of surety to require the debtor to pay before surety pays.
- Upon payment of more than his/her proportionate share, each cosurety may compel other cosureties to pay their shares.
- Upon payment of debt, surety may recover payment from debtor.
- Upon payment, surety obtains same rights against debtor that creditor had.
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