Question 1

What is a Suretyship Agreement?

Accepted Answer

A Suretyship Agreement is a contract where a third party (the surety) agrees to be liable for the debt or obligations of another person (the principal debtor) if that person fails to pay. It provides additional security for creditors.

Question 2

Is this template compliant with South African law?

Accepted Answer

Yes, this template complies with the General Law Amendment Act which requires suretyship agreements to be in writing. It includes all mandatory elements for an enforceable suretyship under South African law.

Question 3

Can I customize this template?

Accepted Answer

Yes, the template includes a customization table to specify the creditor, principal debtor, surety, nature and amount of the debt, conditions for calling on the surety, and any limitations on liability.

Question 4

What key clauses are included in the template?

Accepted Answer

The template covers: identification of parties; nature of the principal debt; extent of surety's liability; conditions for calling on the surety; rights of the surety; release and discharge provisions; and acknowledgments by the surety.

Question 5

Who should use this template?

Accepted Answer

Creditors requiring additional security for debts should use this template. Common scenarios include landlords requiring sureties for tenants, suppliers extending credit, and lenders requiring personal guarantees.

Question 6

What format is the template delivered in?

Accepted Answer

The template is delivered in Microsoft Word format (.docx), ready for customization and signature by the surety.

Template Suretyship
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Template SuretyshipAgreement