Suretyship

Suretyship is a legal agreement where a person (the surety) agrees to take responsibility for someone else's debt or obligation if that person fails to fulfill it. Essentially, it’s a promise to back up another’s commitment, providing additional security for lenders or parties involved. The surety is liable only if the primary debtor defaults. This arrangement helps businesses or individuals secure loans or contracts, offering reassurance to lenders that there’s a backup plan if the original obligor cannot meet their obligations.