Law Reform (Mercantile Guarantee) Act 1981

Link to law: https://legislation.gov.im/cms/images/LEGISLATION/PRINCIPAL/1981/1981-0032/LawReformMercantileGuaranteeAct1981_1.pdf
Published: 2012-09-01

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Law Reform (Mercantile Guarantee) Act 1981

c i e
AT 32 of 1981

LAW REFORM (MERCANTILE

GUARANTEE) ACT 1981

Law Reform (Mercantile Guarantee) Act 1981 Index


c AT 32 of 1981 Page 3

c i e
LAW REFORM (MERCANTILE GUARANTEE) ACT 1981

Index Section Page

1 Consideration for guarantee need not appear by writing ........................................ 5
2 A surety who discharges the liability to be entitled to assignment of all
securities held by the creditor ....................................................................................... 5
3 Short title .......................................................................................................................... 6
ENDNOTES 7

TABLE OF LEGISLATION HISTORY 7
TABLE OF RENUMBERED PROVISIONS 7
TABLE OF ENDNOTE REFERENCES 7

Law Reform (Mercantile Guarantee) Act 1981 Section 1


c AT 32 of 1981 Page 5

c i e
LAW REFORM (MERCANTILE GUARANTEE) ACT 1981

Received Royal Assent: 24 November 1981
Passed: 15 December 1981
Commenced: 15 December 1981
AN ACT
to amend the law relating to guarantees and securities, and for
connected purposes.
1 Consideration for guarantee need not appear by writing

[P1856/97/3]
Notwithstanding the provisions of the Law Reform (Enforcement of Contracts) Act
1956, no special promise, to be made by any person to answer for the debt,
default, or miscarriage of another person, being in writing, and signed by the
party to be charged therewith or some other person by him thereunto lawfully
authorized, shall be deemed invalid to support an action, suit, or other
proceeding to charge the person by whom such promise shall have been made,
by reason only that the consideration for such promise does not appear in
writing, or by necessary inference from a written document.
2 A surety who discharges the liability to be entitled to assignment of all

securities held by the creditor

[P1856/97/5]
(1) Subject to subsection (2), every person who, being surety for the debt or
duty of another, or being liable with another for any debt or duty, shall
pay such debt or perform such duty, shall be entitled to have assigned to
him, or to a trustee for him, every judgment, specialty, or other security
which shall be held by the creditor in respect of such debt or duty,
whether such judgment, specialty, or other security shall or shall not be
deemed at law to have been satisfied by the payment of the debt or
performance of the duty, and such person shall be entitled to stand in the
place of the creditor, and to use all the remedies, and, if need be, and
upon a proper indemnity, to use the name of the creditor, in any action
or other proceeding, at law or in equity, in order to obtain from the
principal debtor, or any co-surety, co-contractor, or co-debtor, as the case
may be, indemnification for the advances made and loss sustained by the
Section 3 Law Reform (Mercantile Guarantee) Act 1981


Page 6 AT 32 of 1981 c

person who shall have so paid such debt or performed such duty, and
such payment or performance so made by such surety shall not be
pleadable in bar of any such action or other proceeding by him.
(2) No co-surety, co-contractor, or co-debtor shall be entitled to recover from
any other co-surety, co-contractor, or co-debtor, by reason of subsection
(1), more than the just proportion to which, as between those parties
themselves, such last-mentioned person shall be justly liable.
3 Short title

This Act may be cited as the Law Reform (Mercantile Guarantee) Act 1981.
Law Reform (Mercantile Guarantee) Act 1981 Endnotes


c AT 32 of 1981 Page 7

ENDNOTES

Table of Legislation History

Legislation Year and No Commencement






Table of Renumbered Provisions

Original Current






Table of Endnote References