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Suretyship Contract
An agreement whereby a party (surety) guarantees the performance of an obligation by another party (principal) to a third party (obligee).
Primarily Liable
The main party responsible for fulfilling an obligation or settling a debt in legal or financial contexts.
Secondarily Liable
Refers to a party who is indirectly responsible for a debt or obligation, where primary liability lies with another party, but the secondary party may be called upon to fulfill the obligation if the primary fails to do so.
Collateral
Assets that are pledged as security for the repayment of a loan, which can be seized by the lender if the borrower fails to repay the loan as agreed.
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