A surety could avoid liability for a principal's default if the principal had refused to pay the seller-creditor because:

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A surety can avoid liability to a creditor by using the following defenses: (1)lack or failure of consideration, (2)inducement of the contract by fraud or duress,and (3)breach of contract by the other party.However,the personal defenses of the principal cannot be used by the surety.These personal defenses include lack of capacity,such as minority or insanity,and bankruptcy.

A Surety Could Avoid Liability for a Principal's Default If