Gratuitous Surety Definition | Becker

Accounting Dictionary

Gratuitous Surety

A surety who is not compensated for his or her promise to the creditor. The consideration for a gratuitous surety's promise is the promise or performance that the creditor makes to the principal debtor. If the creditor does anything to vary a gratuitous surety's risk, then the gratuitous surety's obligation is discharged.

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