Legal effects of the fraud originating from the co-surety on the validity of the surety contract and/or the rights of the surety: The victim of the fraud

In case a surety concludes a contract due to fraudulent acts of his co-surety, he may find himself in a rather unenviable position. Remedies for his protection are very limiting. Namely, third parties' fraud only exceptionally leads to the annulment of the contract: if the contracting party is...

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Main Author: Dabić Snežana
Format: Article
Language:English
Published: University of Belgrade, Faculty of Law, Belgrade, Serbia 2020-01-01
Series:Anali Pravnog Fakulteta u Beogradu
Subjects:
Online Access:https://scindeks-clanci.ceon.rs/data/pdf/0003-2565/2020/0003-25652001126D.pdf
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author Dabić Snežana
author_facet Dabić Snežana
author_sort Dabić Snežana
collection DOAJ
description In case a surety concludes a contract due to fraudulent acts of his co-surety, he may find himself in a rather unenviable position. Remedies for his protection are very limiting. Namely, third parties' fraud only exceptionally leads to the annulment of the contract: if the contracting party is guilty of fraud; or the contract is gratuitous, which is very questionable for surety contract. The chances for annulment are even fewer if we apply the rules of mistake: mistake as to the debtor solvency represents a mistake as to the motif which is only exceptionally legally relevant. Finally, the right to ask damages from co-surety can also be of limited nature: firstly, there is a risk that the damages cannot be compensated; secondly, an absurd situation may occur that the victim of the fraud cannot reject the contribution claim from the co-surety but he may later on ask damages from him.
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spelling doaj.art-981a16a0889346019d9c2b536fd10fd82022-12-21T23:34:55ZengUniversity of Belgrade, Faculty of Law, Belgrade, SerbiaAnali Pravnog Fakulteta u Beogradu0003-25652406-26932020-01-0168112614510.5937/AnaliPFB2001128D0003-25652001126DLegal effects of the fraud originating from the co-surety on the validity of the surety contract and/or the rights of the surety: The victim of the fraudDabić Snežana0Univerzitet u Beogradu, Pravni fakultet, SerbiaIn case a surety concludes a contract due to fraudulent acts of his co-surety, he may find himself in a rather unenviable position. Remedies for his protection are very limiting. Namely, third parties' fraud only exceptionally leads to the annulment of the contract: if the contracting party is guilty of fraud; or the contract is gratuitous, which is very questionable for surety contract. The chances for annulment are even fewer if we apply the rules of mistake: mistake as to the debtor solvency represents a mistake as to the motif which is only exceptionally legally relevant. Finally, the right to ask damages from co-surety can also be of limited nature: firstly, there is a risk that the damages cannot be compensated; secondly, an absurd situation may occur that the victim of the fraud cannot reject the contribution claim from the co-surety but he may later on ask damages from him.https://scindeks-clanci.ceon.rs/data/pdf/0003-2565/2020/0003-25652001126D.pdfsuretyvalidity of the contractthird party's fraudmistake as to the solvency of the debtorthe relation between co-sureties
spellingShingle Dabić Snežana
Legal effects of the fraud originating from the co-surety on the validity of the surety contract and/or the rights of the surety: The victim of the fraud
Anali Pravnog Fakulteta u Beogradu
surety
validity of the contract
third party's fraud
mistake as to the solvency of the debtor
the relation between co-sureties
title Legal effects of the fraud originating from the co-surety on the validity of the surety contract and/or the rights of the surety: The victim of the fraud
title_full Legal effects of the fraud originating from the co-surety on the validity of the surety contract and/or the rights of the surety: The victim of the fraud
title_fullStr Legal effects of the fraud originating from the co-surety on the validity of the surety contract and/or the rights of the surety: The victim of the fraud
title_full_unstemmed Legal effects of the fraud originating from the co-surety on the validity of the surety contract and/or the rights of the surety: The victim of the fraud
title_short Legal effects of the fraud originating from the co-surety on the validity of the surety contract and/or the rights of the surety: The victim of the fraud
title_sort legal effects of the fraud originating from the co surety on the validity of the surety contract and or the rights of the surety the victim of the fraud
topic surety
validity of the contract
third party's fraud
mistake as to the solvency of the debtor
the relation between co-sureties
url https://scindeks-clanci.ceon.rs/data/pdf/0003-2565/2020/0003-25652001126D.pdf
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