Etheridge v. Rawleigh Co.

(After stating the foregoing facts.) “The contract of suretyship is that whereby one obligates himself to pay the debt of another in consideration of credit or indulgence, or other benefit given to his principal, the principal remaining bound therefor. It differs from a guaranty in this, that the consideration of the latter is a benefit flowing to the guarantor.” Civil Code (1910), § 3538. As has often been said,-it is sometimes very difficult to apply the rules of distinction in determining whether a particular contract is that of suretyship or guaranty. In differentiating a contract of…