PMBI Talks about – Surety ship!
#Headlines – Should a suretyship be furnished in the ordinary cause of a person’s business then such a suretyship is deemed valid even if spousal consent was not given?
According to Bizcommunity
“Under the Roman Dutch common law, marriages were ordinarily in community of property and the husband was vested with the marital power. This caused the husband to deal with all the assets of the joint estate to the exclusion and without the consent of his wife. The marital power of a husband was abolished by the Matrimonial Property Act, No 88 of 1984 (Matrimonial Act).
The effect of the Matrimonial Act meant that spouses, married in community of property, have the same powers regarding the disposal of the assets of the joint estate, the contracting of debts which lie against the joint estate and the management of the joint estate. However, the Matrimonial Act does not provide free reign and imposes limitations on the exercise of the powers of spouses such as that neither spouse may perform any juristic act with regard to the joint estate without the consent of the other.”
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Surety agreements are quite common in creditor-debtor transactions. However, the rights and defenses of a surety can be complex and confusing. For example, a guarantor is like a surety but they have completely different obligations.
Consult us to learn more about your surety agreement or to seek advice about whether to become a surety.
Tel: 011 675-1788
Fax: 011 675-1818