Discharge of Surities
The discharge of sureties refers to the release or relief of individuals or parties who have acted as sureties for someone else’s obligations or debts. A surety is a person or entity that guarantees the performance of another person’s or entity’s contractual or legal obligations. When a person acts as a surety, they assume responsibility for fulfilling the obligations if the primary party fails to do so.There are several ways in which a surety can be discharged from their obligations:1. Performance: If the principal party fulfills their obligations as agreed upon, the surety is discharged. In this case, the surety’s liability ends because the underlying obligation has been satisfied.2. Expiration of the term: If the surety agreement specifies a specific term or duration, the surety’s obligations are typically discharged once that term expires. The surety is no longer responsible for the obligations beyond the specified period.3. Agreement of the parties: The surety may be discharged if all parties involved agree to release the surety from their obligations. This can occur through a formal agreement or consent from all relevant parties.4. Material alteration: If there is a material alteration to the terms of the original agreement without the surety’s consent, the surety may be discharged from their obligations. Material alterations can include changes to the contract terms, obligations, or scope of work.5. Release or discharge by the creditor: The creditor or the party owed the obligation can release the surety from their obligations. This typically occurs when the creditor is satisfied with the performance of the principal party or agrees to release the surety for other reasons.It’s important to note that the specific laws governing the discharge of sureties may vary depending on the jurisdiction and the terms of the surety agreement. If you have a specific legal question or situation related to sureties, it’s recommended to consult with a qualified attorney familiar with the laws in your jurisdiction.