Signing on as gurantor does not mean the end of the world and
that all is lost.
I give u some ideas on how to release urself from such
obligations if applicable:-
It depends really what was ur state of mind when u signed in as
a guarantor.
Did a legal rep or creditor from the bank advise u on your
obligations as a gurantor ?
Was there undue influence ? Unconscionability ?
Misrepresentations ? - These are all vitiating factors allowing u
to avoid the contract of gurantee.
If yes u can seek advise from a legal counsel on ur next
move.
But for the purposes of sureties in Sg,
It has been said that the liability of the surety arises
strictissimi juris - the contract of gurantee is to be strictly
construed innfavour of the surety.
Firstly , the surety is entering into a liability no for himself
but for a 3rd person; therefore it is the duty of the creditor to
see that the obligation is couched in clear terms so that the
surety understands the liability he is undertaking.
Secondly, the surety often recieves no benefit for for his
onerous obligation.
You can also discharge yourself of surety.
i) Variation of principal contract
ii) Departure from T of Gurantee
iii) Alterations of T of Gurantee
iv) Agreement to give time to principal debtor ( The person that
is actually in debt)
v) Agreement to give time to Surety (U)
and many many eg Non-disclosure , Prejudice.....etc
Then u look at ur rights as a surety
- You have as of right under law , to pursue the principal
debtors. Exercise ur right of claim, u can bring two kinds of
claims against them. Restitution and Indemnity.
In equity, ur rights of indeminity can be exercised.
But for ur case, they have run off, so, means u can anytime
exercise the right of indemnity or just sue them for
restitution.
However, if u are really able to bring in the issue of
unconscionability, courts will have discretion, as they dont look
highly upon oppression in the guise of performance gurantees.
So, carefully think through the time u entered into contract as
a gurantor.
Good luck yo !
