Encyclopaedia Britannica, 11th Edition, "Groups, Theory of" to "Gwyniad": Volume 12, Slice 6Various
Science
Encyclopaedia Britannica, 11th Edition, "Groups, Theory of" to "Gwyniad": Volume 12, Slice 6
Various
Encyclopedias and dictionaries
to the acceptance by the heads of public departments of guarantees given
by companies for the due performance of the duties of an office or
employment in the public service, and enables the Commissioners of His
Majesty's Treasury to vary the character of any security, for good
behaviour by public servants, given after the passing of the act.
Before the surety can be rendered liable on his guarantee, the principal
debtor must have made default. When, however, this has occurred, the
creditor, in the absence of express agreement to the contrary, may sue
the surety, without even informing him of such default having taken
place, or requiring him to pay, and before proceeding against the
principal debtor or resorting to securities for the debt received from
the latter. In those countries where the municipal law is based on the
Roman civil law, sureties usually possess the right (which may, however,
be renounced by them) originally conferred by the Roman law, of
compelling the creditor to insist on the goods, &c. (if any) of the
principal debtor being first "discussed," i.e. appraised and sold, and
appropriated to the liquidation of the debt guaranteed (see Codes Civil,
Fr. and Bel. 2021 et seq.; Spain, 1830, 1831; Port. 830; Germany, 771,
772, 773; Holland, 1868; Italy, 1907; Lower Canada, 1941-1942; Egypt
[mixed suits] 612; _ibid._ [native tribunals] 502), before having
recourse to the sureties. This right, according to a great American
jurist (Chancellor Kent in _Hayes_ v. _Ward_, 4 Johns. New York, Ch.
Cas. p. 132), "accords with a common sense of justice and the natural
equity of mankind." In England this right has never been fully
recognized. Neither does it prevail in America nor, since the passing of
the Mercantile Law Amendment Act (Scotland) 1856, s. 8, is it any longer
available in Scotland where, prior to the last-named enactment, the
benefit of discussion, as it is termed, existed. In England, however,
before any demand for payment has been made by the creditor on the
surety, the latter can, as soon as the principal debtor has made
default, compel the creditor, on giving him an indemnity against costs
and expenses, to sue the principal debtor if the latter be solvent and
able to pay (_per_ A. L. Smith, L.J., in _Rouse_ v. _Bradford Banking
Company_, 1894, 2 Ch. 75; _per_ Lord Eldon in _Wright_ v. _Simpson_, 6
Ves., at p. 733), and a similar remedy is also open to the surety in
America (see Brandt on _Suretyship_, par. 205, p. 290) though in
neither of these countries nor in Scotland can one of several sureties,
when sued for the whole guaranteed debt by the creditor, compel the
latter to divide his claim amongst all the solvent sureties, and reduce
it to the share and proportion of each surety. However, this _beneficium
divisionis_, as it is called in Roman law, is recognized by many
existing codes (Fr. and Bel. 2025-2027; Spain, 1837; Portugal, 835-836;
Germany, 426; Holland, 1873-1874; Italy, 1911-1912; Lower Canada, 1946;
Public-domain text, read in full here on John Shaqi.
Reviews
Reviews
No reviews yet
Be the first to share your thoughts on this work.
Elsewhere in the archive
Join the Discussion
Join the discussion
Sign in to leave a comment or review.
Sign InorCreate an account