The General Law of Suretyship; Including Commercial and Non-Commercial Guarantees and Compensated Corporate Suretyship (Paperback)

Purchase of this book includes free trial access to www.million-books.com where you can read more than a million books for free. This is an OCR edition with typos. Excerpt from book: Another line of decisions denies to the retiring partner the rights of a surety against firm creditor under such circumstances, and holds that the partners, being originally bound as principals, cannot, by agreement between themselves, change their relations to those of principal and surety so as to affect the rights and duties of firm creditors, unless with the consent of the latter. As to them such agreement is res inter alios acta.44 It has been held in a few cases, however, that while the creditor is not bound, even after notice, to respect the rights of the retiring partner as a strict surety, he is nevertheless bound in equity to exercise good faith and reasonable diligence in enforcing his rights against the partner who has assumed the firm debts, and his failure to do so will release the retiring partner, not absolutely, but to the extent of any injury actually suffered by him in consequence of the creditors want of diligence and good faith.45 9. Real Suretyship-Mortgage or Pledge to Secure Another's Debt?Wife's Mortgage for Husband's Debt. If property, real or personal, of one person is pledged or mortgaged to secure the debt of another, such property occupies the position of a surety, and whatever act of 1891), 15 S. W. Rep. 731. See also Conwell v. McCowan, 81 1ll. 285; Savage v. Putnam, 32 N. Y. 501; Burnside v. Fetzner, 63 Mo. 107; Gll- len v .Peters, 39 Kan. 489; Chandler v. Higgins, 109 1ll. 602; Wendt- lant V. Sohre, 37 Minn. 162; Brill v. Hoile, 53 Wis. 537; Webster v. Lawson, 73 Wis. 561. Compare Barnes v. Boyers, 34 W. Va. 303; Oakley v. Pascheller, 10 Bll. (N. S.) 548; Union Mut. Life Ins. Co. v. Hanford, 143 U. S. 185; Campbell v. Floyd, 153 Pa. St. 83, 94. 44. Harris v. Lindsay, 4 Wash. C. C. 98; McAreavy v. Magrll, 122 La. 605; Hall v. Jones, 56 A...