A conditional guarantor of collection differs from an absolute surety in that the surety is bound with the principal debtor as a primary obligor.

Question

Quizplus · Accepted Answer

A conditional guarantor of collection only becomes liable if the creditor cannot, after exhausting all legal remedies, collect from the principal debtor, whereas an absolute surety is immediately co-responsible with the debtor, acting as a primary obligor.

A Conditional Guarantor of Collection Differs from an Absolute Surety