principal and surety

principal and surety
A contractual relationship whereby one party—the surety—agrees to pay the principal's debt or perform his or her obligation in case of the principal's default.

Dictionary from West's Encyclopedia of American Law. 2005.


principal and surety
A contractual relationship whereby one party—the surety—agrees to pay the principal's debt or perform his or her obligation in case of the principal's default.

Short Dictionary of (mostly American) Legal Terms and Abbreviations.

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Look at other dictionaries:

  • principal — adj Chief; leading; most important or considerable; primary; original. Highest in rank, authority, character, importance, or degree. As to principal challenge principal contract principal obligation principal office principal vein, see those… …   Black's law dictionary

  • principal — prin·ci·pal 1 / prin sə pəl/ adj 1: being the main or most important, consequential, or influential their principal place of business the principal obligor 2: of, relating to, or constituting principal or a principal the principal amount of the… …   Law dictionary

  • Surety bond — A surety bond is a contract among at least three parties: * The principal the primary party who will be performing a contractual obligation * The obligee the party who is the recipient of the obligation, and * The surety who ensures that the… …   Wikipedia

  • surety — One who at the request of another, and for the purpose of securing to him a benefit, becomes responsible for the performance by the latter of some act in favor of a third person, or hypothecates property as security therefor. One who undertakes… …   Black's law dictionary

  • Surety — A surety is a person who agrees to be responsible for the debt or obligation of another. Furthermore, a surety is also a security against loss or damage or for the fulfillment of an obligation, the payment of a debt, etc.; a pledge, guaranty, or… …   Wikipedia

  • surety — sure·ty / shu̇r ə tē/ n pl ties [Anglo French seurté, literally, guarantee, security, from Old French, from Latin securitat securitas, from securus secure] 1: a formal engagement (as a pledge) given for the fulfillment of an undertaking 2: one… …   Law dictionary

  • Surety — Sure ty, n.; pl. {Sureties}. [OE. seurte, OF. se[ u]rt[ e], F. s[^u]ret[ e]. See {Sure}, {Security}.] 1. The state of being sure; certainty; security. [1913 Webster] Know of a surety, that thy seed shall be a stranger in a land that is not theirs …   The Collaborative International Dictionary of English

  • Principal — Prin ci*pal, n. 1. A leader, chief, or head; one who takes the lead; one who acts independently, or who has controlling authority or influence; as, the principal of a faction, a school, a firm, etc.; distinguished from a {subordinate}, {abettor} …   The Collaborative International Dictionary of English

  • principal — adj. & n. adj. 1 (usu. attrib.) first in rank or importance; chief (the principal town of the district). 2 main, leading (a principal cause of my success). 3 (of money) constituting the original sum invested or lent. n. 1 a head, ruler, or… …   Useful english dictionary

  • surety — A person who engages under a contract of suretyship to answer for the debt, default, or miscarriage of another. 50 Am J1st Suret §§ 2, 3. For some purposes, inclusive of a guarantor. UCC § 1 201(40). As applied to persons, the word has an… …   Ballentine's law dictionary

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