| Commentary

39 Liability of surety

| Commentary

39 Liability of surety

The extent of a surety’s liability depends upon the terms of the contract of suretyship1, but it will usually cover losses which result from the contractor’s fraud2 or wrongful repudiation of the construction contract3. Occasionally, contracts of suretyship contain step in rights entitling the surety to take over performance of the works in the case of the contractor’s default. Most contracts of suretyship ancillary to construction contracts are expressed to be discharged on completion of the works or on fulfilment of the contractor’s obligation to rectify defects4; if this

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