South Africa
Suretyship Agreement
R549
Create a suretyship agreement where a surety agrees to be responsible for another person’s debt or obligations if the principal debtor fails to pay or perform.
A Suretyship Agreement is used where a third party agrees to stand surety for the debt or obligations of a principal debtor. It is commonly used with loans, supplier accounts, credit facilities, leases, shareholder debts, and settlement agreements.
South African legal context (2026 checklist)
A suretyship must be in writing and signed by or on behalf of the surety. The agreement should clearly identify the creditor, principal debtor, surety, principal obligation, amount or scope of liability, and whether the suretyship is limited, unlimited, continuing, or linked to a specific debt.
- General Law Amendment Act 50 of 1956, section 6
- South African common law of suretyship
- South African common law of contract
- National Credit Act 34 of 2005, where applicable
- Prescription Act 68 of 1969
- Insolvency Act 24 of 1936
- Protection of Personal Information Act 4 of 2013
Use this as a starting point only. Verify current gazetted amendments, tribunal rules, and SARS / DOL circulars that may apply to your matter.
Typical questions we'll walk you through
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Who is the creditor?
Who is the principal debtor?
Who is the surety?
What debt or obligation is being secured?
Is the suretyship limited or unlimited?
What maximum amount applies, if any?
Is it continuing security?
Will sureties be jointly and severally liable?
Will the surety be liable for interest and legal costs?
What happens when the principal debtor defaults?
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