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
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applies to a contract made before the act, where the breach thereof, and
the payment by the surety, have taken place subsequently. The right of
the surety to be subrogated, on payment by him of the guaranteed debt,
to all the rights of the creditor against the principal debtor is
recognized in America (_Tobin_ v. _Kirk_, 80 New York S.C.R. 229), and
many other countries (Codes Civil, Fr. and Bel. 2029; Spain, 1839; Port.
839; Germany, 774; Holland, 1877; Italy, 1916; Lower Canada, 2959; Egypt
[mixed suits], 617; _ibid._ [native tribunals], 505).
As regards the rights of the surety against a co-surety, he is entitled
to contribution from him in respect of their common liability. This
particular right is not the result of any contract, but is derived from
a general equity, on the ground of equality of burden and benefit, and
exists whether the sureties be bound jointly, or jointly and severally,
and by the same, or different, instruments. There is, however, no right
of contribution where each surety is severally bound for a given portion
only of the guaranteed debt; nor in the case of a surety for a surety;
(see _In re Denton's Estate_, 1904, 2 Ch. 178 C.A.); nor where a person
becomes a surety jointly with another and at the latter's request.
Contribution may be enforced, either before payment, or as soon as the
surety has paid more than his share of the common debt (_Wolmershausen_
v. _Gullick_, 1803, 2 Ch. 514); and the amount recoverable is now always
regulated by the number of solvent sureties, though formerly this rule
only prevailed in equity. In the event of the bankruptcy of a surety,
proof can be made against his estate by a co-surety for any excess over
the latter's contributive share. The right of contribution is not the
only right possessed by co-sureties against each other, but they are
also entitled to the benefit of all securities which have been taken by
any one of them as an indemnity against the liability incurred for the
principal debtor. The Roman law did not recognize the right of
contribution amongst sureties. It is, however, sanctioned by many
existing codes (Fr. and Bel. 2033; Germany, 426, 474; Italy, 1920;
Holland, 1881; Spain, 1844; Port. 845; Lower Canada, 1955; Egypt [mixed
suits], 618, _ibid._ [native tribunals], 506), and also by the Indian
Contract Act 1872, ss. 146-147.
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