suretyship
- The agreement where one party guarantees that another party's debt or obligation will be fulfilled to a third party
- The bank insisted on a suretyship to minimize their risk from the loan provided to the struggling company.
- In case of nonpayment on the loan, the suretyship arrangement ensures the third-party investor gets compensated.
- Suretyship is a common condition in construction contracts to protect against unforeseen damages or financial loss.
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