§ 2808 Surety Liability And Notice

Key Takeaways

•If you promise to pay someone else's debt if they don't, you're on the hook just like they are.
•You don't get a heads-up if the person you're backing fails to pay, unless you couldn't find out on your own and the person owed knows you don't know.
•You have to try to find out if the person you're backing didn't pay before you can say you didn't know.

Example

Your friend takes a loan to buy a car, and you promise the bank you'll pay if your friend doesn't.

If your friend stops paying, the bank can ask you to pay the whole loan, just like they'd ask your friend. You won't get a warning from the bank unless you couldn't find out on your own that your friend stopped paying, and the bank knows you don't know.

Where one assumes liability as surety upon a conditional obligation, his liability is commensurate with that of the principal, and he is not entitled to notice of the default of the principal, unless he is unable, by the exercise of reasonable diligence, to acquire information of such default, and the creditor has actual notice thereof. (Amended by Stats. 1939, Ch. 453.)

Key Takeaways

•If you promise to pay someone else's debt if they don't, you're on the hook just like they are.
•You don't get a heads-up if the person you're backing fails to pay, unless you couldn't find out on your own and the person owed knows you don't know.
•You have to try to find out if the person you're backing didn't pay before you can say you didn't know.

Example

Your friend takes a loan to buy a car, and you promise the bank you'll pay if your friend doesn't.

Key Takeaways

Example

Key Terms

References

§ 2808 Surety Liability And Notice

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References