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Chiang mai, Thailand
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Suretyship Agreement
Suretyship Agreement
Suretyship Agreement is stated that on the civil and commercail code are as follow :
Section 680 Suretyship is a contract whereby a third person, called the surety binds himself to a creditor to satisfy an obligation in the event that the debtor fails to perform it.
A contract of suretyship is not enforceable by action unless there be some written evidence signed by the surety.
Section 681 Suretyship can be given only for a valid obligation.
A future or conditional obligation may be secured for the event in which it would have effect.
An obligation, resulting from a contract which under mistake or incapacity does not bind the debtor, can be validly secured if the surety at the time when he binds himself knows such mistake or incapacity.
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