Guarantee obtained by concealment invalid where creditor's silence on material facts vitiates the surety's informed consent. A guarantee procured by the creditor's silence as to material circumstances is void because the surety's consent must be informed; concealment by the creditor vitiates the suretyship. Examples include a guarantor unaware of an agent's prior misconduct and a guarantor uninformed of a private agreement altering the buyer's obligation; in each case the guarantee is invalid when material facts are withheld.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Guarantee obtained by concealment invalid where creditor's silence on material facts vitiates the surety's informed consent.
A guarantee procured by the creditor's silence as to material circumstances is void because the surety's consent must be informed; concealment by the creditor vitiates the suretyship. Examples include a guarantor unaware of an agent's prior misconduct and a guarantor uninformed of a private agreement altering the buyer's obligation; in each case the guarantee is invalid when material facts are withheld.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
