Cautionary Obligations Cases

Debtor's misrepresentation or undue influence does not affect the validity of the cautionary obligation unless creditor is aware of the misrepresentation

All co-cautioners or none are bound

Duty of good faith is met if independent legal advice is sought

Creditor does not need to disclose material facts but if chooses to then disclose fully

Creditor has to disclose if aware that the cautioner is under a misrepresentation

Can get relief from co-cautioners if excluding insolvents

Guaranteeing specific funds

Misrepresentation by debtor

Obligation is dependent on debt existing

First money in is set off against first debt

Not pressing for immediate payment is not giving time

If fixed limit and debtor gets more money, cautioner is still not released

Invalid security does not make an invalid obligation

Guarantee enforced 14 years after cautioner’s death