383. Sureties in general.

A building or engineering contract may provide that a contractor should give sureties for the due performance of his obligations under the contract, and where a contractor does undertake to give sureties it is a question of construction whether the provision of sureties is a condition of the contract1. Occasionally the employer will undertake to provide sureties to guarantee payment to the contractor2.

The general principles governing the validity and enforcement of contracts of guarantee, the release of the sureties and the general obligations of the parties apply where a contract of guarantee is collateral to a building contract

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