A suretyship clause or document is very important
because it provides the Landlord with security in the event that Rent 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 Agreements, 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 Rent. In such a case
the Landlord would be able to claim the Rent directly from the directors of the
company in their personal capacity. In terms of the TPN Suretyship Agreements,
the directors will be bound jointly and severally. This means that the Landlord
can elect to split the outstanding amount between the sureties or simply claim
the total amount from one surety alone. The provisions of the various
suretyship agreements and their implications will be dealt with in a separate
WIKI.