Question

When a surety has paid more than his share of debt to the creditor, he has a right of contribution from the co-securities who are equally bound to pay with him.

• A. False
• B. True
• C. Partly true
• D. None of the above

Answer 1

Answer: (B)

True

Rights of Surety against Co-sureties:

When two or more persons give a guarantee for the same debt, they are called as co-sureties. All of them are equally liable to the creditor for the payment of the debt to the creditor. The rights of one co-surety against the other co-sureties are as follows:

1. Right to Contribute Equally

If two or more persons are co-sureties for the same debt either jointly or severally, or whether under the same or different contracts and whether with or without the knowledge of each other, the co-sureties in the absence of any contract to the contrary, are liable as between themselves, to pay each, an equal shares of the whole debt, or that part of it which remains unpaid by the principal debtor.

Sometimes, one co-surety discharges the entire obligations. In such cases, he can obtain equal contribution from the other co-sureties.

2. Liability of Co-sureties bound in Different Sums

If the co-sureties are bound in different sums, they are liable to pay equally but not more than the maximum amount guaranteed by each one of them.