Cosuretyship
Cosuretyship is a legal arrangement in which two or more guarantors, known as co-sureties, jointly undertake the obligation to guarantee a debtor’s performance or payment of a loan or debt. Each co-surety is collectively responsible for the entire debt, and their liability is typically solidary, meaning the creditor can pursue all or any of the sureties for the full amount owed.
This arrangement often arises in contractual credit agreements where the risk is shared among multiple guarantors,
In the event of debtor default, the creditor may proceed against any one or more co-sureties to
The validity and enforceability of cosuretyship depend on proper legal formalities, clear agreement terms, and the
Overall, cosuretyship plays a significant role in financial and contractual contexts where collective reassurance enhances creditworthiness