Durham v. Greenwold

Jenkins, Justice.

The Code, § 103-101, provides as follows: “The contract of suretyship is one whereby a person 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.” Although the distinction between a surety and a guarantor is thus plainly set forth by the Code, it would seem that the line of de*167marcation as there drawn is not absolutely all-inclusive, since an original…