ESCAPING LIABILITY UNDER A SURETYSHIP: WHEN THE LENDER MUST BE UPFRONT WITH DETAILS
Absa Bank Limited v Van Eeden and Others (4078/2012)  ZAECPEHC 14 (27 March 2018)
Generally, when one puts pen to paper as a borrower or surety, it is your own responsibility to acquaint yourself with the details of the transaction and responsibility undertaken. However, as this case shows, there are limitations and in very specific circumstances, the lender (in this instance the bank) has a duty to disclose certain details within its knowledge. Failure to do so, allows the surety to escape liability under the suretyship.
STBB’s STSMA REFERENCE GUIDE
In this, the fifty-fourth set of notes for your STSMA Reference Guide, Prescribed Conduct Rule 2 is discussed.
Prescribed Conduct Rule 2
(N.B. Print in landscape)