Are you looking for a deed or contract of suretyship? Do you want to make a person liable for paying the debts of another or performing another’s obligations? Do you want one person to assume liability for any debt, default, or other failures of another?
There are normally three people involved:
- the creditor (the person that will be paid or to whom there are obligations)
- the debtor (the person who must pay the creditor or comply with their obligations)
- the surety (the person who assumes liability for any debt, default, or other failures of the debtor)
Let’s look at examples:
- A tenant rents property from a landlord and pay the landlord rent. The tenant is a company or a close corporation. The shareholder or member stands surety for the tenant.
- A student takes out a study loan from a bank to pay a university for their studies. The parent of the student stands surety for the student. If the student does not pay the bank back, the parent will have to.
How you benefit
- Make sure you get paid
- Make sure the someone with whom you have agreement complies with their obligations or responsibilities to you.
It is drafted in plain language. There are many examples of suretyships out there, but very few in plain language. It is about four pages in editable format.