A suretyship clause is very important
because it provides the landlord with additional security in the event that rental is not
paid. Importantly, when a surety signs as both a surety and a co-principle
debtor, as is provided for in the TPN Suretyship Agreement, the Landlord’s
rights are even further protected because the Landlord need not even claim
amounts owing from the Tenant first, but may rather proceed directly against
the surety for any outstanding amounts. Legally, this is termed “renouncing the
benefit of excussion” and is particularly beneficial in an instance where, for
example, a company is not generating enough profit to pay rental. In such a
case the Landlord would be able to claim the rental directly from the directors
of the company in their personal capacity. In terms o,f the TPN Suretyship Agreement,
the directors will be bound jointly and severally. This means that the Landlord
can elect to split the outstanding amount between the surities or simply claim
the total amount from one surety alone.