Amanda and Janice were cosureties for their friend Haley on a loan contract.When Haley failed to repay the loan within the stipulated time,Janice paid the whole obligation as her surety.Janice is now entitled to collect half the amount of liability from Amanda in accordance with her ___.

Question

Quizplus · Accepted Answer

If several people act as cosureties for one principal,and any one of them pays the whole obligation,he/she is entitled to collect the extra amount paid from the other cosureties.This is known as the cosurety's right to contribution.The relative shares of cosureties,as well as any limitations on their liability,are normally set out in the contract of suretyship.

Amanda and Janice Were Cosureties for Their Friend Haley on a Loan