The Surety Has Certain Defenses to Paying $\bullet$ General Contract Defenses: the Surety May Raise Common Defenses Like

Essay

The surety has certain defenses to paying.What are they?
e.g.,that debtor has defaulted several times before).
$\bullet$ General contract defenses: The surety may raise common defenses like incapacity infancy),lack of consideration unless promissory estoppel can be substituted or unless no separate consideration is necessary because the surety's and debtor's obligations arise at the same time),and creditor's fraud or duress on surety.However,fraud by the principal debtor on the surety to induce the suretyship will not release the surety if the creditor extended credit in good faith; if the creditor knows of the fraud perpetrated by the debtor on the surety,the surety may avoid liability.
Moderate