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Guarantee vs Suretyship
What are the distinctions between
Guarantee and Suretyship?
• Guaranty is collateral while Surety is an
original promissory undertaking.
• In guaranty, the guarantor is primarily
liable while in suretyship, the surety is
secondarily available.
• The guarantor binds himself to pay if the principal
cannot pay. The surety undertakes to pay if the
principal does not pay.
• The guarantor is the insurer of the solvency of the
debtor. The surety is the insurer of the debt.
• The guarantor can avail of the benefit of
excussion and division in case the creditor
proceeds against him. The surety cannot avail of
the benefit of excussion and division.

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  • 2. What are the distinctions between Guarantee and Suretyship? • Guaranty is collateral while Surety is an original promissory undertaking. • In guaranty, the guarantor is primarily liable while in suretyship, the surety is secondarily available.
  • 3. • The guarantor binds himself to pay if the principal cannot pay. The surety undertakes to pay if the principal does not pay. • The guarantor is the insurer of the solvency of the debtor. The surety is the insurer of the debt. • The guarantor can avail of the benefit of excussion and division in case the creditor proceeds against him. The surety cannot avail of the benefit of excussion and division.