The Euity Of Interests In Suretyship

The interests of a surety are imbalanced in a suretyship,which is based on the credibility and property of a person to ensure the satisfaction of the creditor's right.Dated back to the Roman Times,the legislators had realized the necessity of guarding a surety's interests.Nowadays,a series of systems in favor of the surety to pursue the equity among the parties to a suretyship have been set up in Civil Law of nearly all the countries.With a purpose of establishing a mechanism which is equal to all the three parties to a suretyship,this thesis does a research on some specific systems related to the goal herein,in order to make some advisable propositions to better the current sueryship laws of china.This thesis consists of introduction,text and conclusion.The introduction raises the topic and gives a brief description to its background and purpose,and the range of its objects and the research methods of this thesis.The text consists of the following five chapters:Chapter 1 is a study on the imbalance of interests among the parities to a suretyship.It respectively tells the imbalance of interests between a surety and an obligee and between a surety and an obligor,for a suretyship is beneficial for both of the obligee and obligor,however,not for the surety who undertakes huge risks and liabilities.Chapter 2 is a research on the necessity of equity of interests among the parties to a suretyship.The Civil Law tries to reverse the imbalance of interests among the parties to a suretyship to meet the requirement of the principle of equity and justice of itself and to make a suretyship function more smoothly.However,the Guaranty Law of the People's Republic of China fails to offer a surety enough protection,which requires urgent revision.Chapter 3 deals with the equity in a suretyship contract.Within the legal system of a nation,the form of a general suretyship,the application of the time limits of suretyship and the defenses of the surety may be effective explorations to help the equity of interests between the parties.Chapter 4 focus on the equity of interests out of a suretyship contract, namely that between the surety and the obligor.A surety who has performed its obligation with accordance to the suretyship contract may recover its loss by a claim to the obligor or exercising the creditor's right in his name(subrogation).A reversed guarantee ensures the satisfaction of the surety's claim for its loss.Where after the conclusion of a suretyship contract arise such unexpected conditions as confirmed by a law concerning the obligor and increasing the risk to the creditor's right,a surety may demand that the obligor exempt its obligation or may in advance exercise its claims for the loss.Chapter 5 is a research on the legislative propositions to protect the surety within the current relevant guaranty laws of china.Some parts need revision,some systems are to set up and some require supplements.Final:A summary and refinement of the views of the paper.