Title 15 — Title 15 — Contracts

The borrower of a thing for use may use it for such purposes only as the lender might reasonably anticipate at the time of lending. R.L.1910, § 1016.

The borrower of a thing for use must not part with it to a third person without the consent of the lender. R.L.1910, § 1017.

The borrower of a thing for use must bear all its expenses during the loan, except such as are necessarily incurred by him to preserve it from unexpected and unusual injury. For such expense he is entitled to compensation from the lender, who may, however, exonerate himself by su…

The lender of a thing for use must indemnify the borrower for damages caused by defects or vices in it, which he knew at the time of lending, and concealed from the borrower. R.L.1910, § 1019.

The lender of a thing for use may at any time require its return, even though he lent it for a specified time or purpose. But if, on the faith of such an agreement, the borrower has made such arrangements that a return of the thing before the period agreed upon would cause him lo…

If a thing is lent for use for a specified time or purpose, it must be returned to the lender without demand, as soon as the time has expired, or the purpose has been accomplished. In other cases it need not be returned until demanded. The borrower of a thing for use must return …

A loan for exchange is a contract by which one delivers personal property to another, and the latter agrees to return to the lender a similar thing at a future time, without reward for its use. R.L.1910, § 1022.

A loan which the borrower is allowed by the lender to treat as a loan for use, or for exchange, at his option, is subject to all the provisions of this chapter. R.L.1910, § 1023.

By a loan for exchange the title to the thing lent is transferred to the borrower, and he must bear all its expenses, and is entitled to all its increase. R.L.1910, § 1024.

A lender for exchange cannot require the borrower to fulfill his obligations at a time, or in a manner, different from that which was originally agreed upon. R.L.1910, § 1025.

This act may be cited as the Uniform Minor Student Capacity to Borrow Act. Laws 1970, c. 215, § 1, emerg. eff. April 15, 1970.

As used in this act: (1) "person" means individual, corporation, government or governmental subdivision or agency, business trust, estate, trust, partnership or association, or any other legal entity; (2) "educational institution" means any university, college, community college,…

A guaranty is a promise to answer for the debt, default or miscarriage of another person. R.L.1910, § 1026.

A person may become guarantor even without the knowledge or consent of the principal. R.L.1910, § 1027.

Where a guaranty is entered into at the same time with the original obligation, or with the acceptance of the latter by the guarantee, and forms, with that obligation, a part of the consideration to him, no other consideration need exist. In all other cases there must be a consid…

expressed. Except as prescribed by the next section, a guaranty must be in writing, and signed by the guarantor; but the writing need not express a consideration. R.L.1910, § 1029.

A promise to answer for the obligation of another, in any of the following cases, is deemed an original obligation of the promisor, and need not be in writing: 1. Where the promise is made by one who has received property of another upon an undertaking to apply it pursuant to suc…

A mere offer to guaranty is not binding, until notice of its acceptance is communicated by the guarantee to the guarantor; but an absolute guaranty is binding upon the guarantor without notice of acceptance. R.L.1910, § 1031.

In a guaranty of a contract, the terms of which are not then settled, it is implied that its terms shall be such as will not expose the guarantor to greater risks than he would incur under those terms which are most common, in similar contracts, at the place where the principal c…

A guaranty to the effect that an obligation is good or collectable imports that the debtor is solvent, and that the demand is collectable by the usual legal proceedings, if taken with reasonable diligence. R.L.1910, § 1033.

A guaranty, such as is mentioned in the last section, is not discharged by an omission to take proceedings upon the principal debt, or upon any collateral security for its payment, if no part of the debt could have been collected thereby. R.L.1910, § 1034.

Any written obligation signed by a minor who is (a) sixteen (16) years of age, with written approval of his parent or guardian, or (b) sixteen (16) years of age and does not reside with a parent or guardian, in consideration of an educational loan received by him from any person,…

In the cases mentioned in the second preceding section the removal of the principal from the State leaving no property therein from which the obligation might be satisfied, is equivalent to the insolvency of the principal, in its effect upon the rights and obligations of the guar…

A guaranty is to be deemed unconditional unless its terms import some condition precedent to the liability of the guarantor. R.L.1910, § 1036.

A guarantor of payment or performance is liable to the guarantee immediately upon the default of the principal, and without demand or notice. R.L.1910, § 1037.

Where one guarantees a conditional obligation, his liability is commensurate with that of the principal, and he is not entitled to notice of the default of the principal, unless he is unable, by the exercise of reasonable diligence, to acquire information of such default, and the…

The obligation of a guarantor must be neither larger in amount, nor in other respects more burdensome than that of the principal; and if, in its terms, it exceeds it, it is reducible in proportion to the principal obligation. R.L.1910, § 1039.

principal. A guarantor is not liable if the contract of the principal is unlawful; but he is liable notwithstanding any mere personal disability of the principal, though the disability be such as to make the contract void against the principal. R.L.1910, § 1040.

A guaranty relating to a future liability of the principal, under successive transactions, which either continues his liability or from time to time renews it after it has been satisfied, is called a continuing guaranty. R.L.1910, § 1041.

A continuing guaranty may be revoked at any time by the guarantor, in respect to future transactions, unless there is a continuing consideration as to such transaction which he does not renounce. R.L.1910, § 1042.

A guarantor is exonerated, except so far as he may be indemnified by the principal, if by any act of the creditor, without the consent of the guarantor, the original obligation of the principal is altered in any respect, or the remedies or rights of the creditor against the princ…

A promise by a creditor, which for any cause is void, or voidable by him at his option, does not alter the obligation or suspend or impair the remedy, within the meaning of the last section. R.L.1910, § 1044.

This act shall be so interpreted and construed as to effectuate its general purpose to make uniform the law of those states which enact it. Laws 1970, c. 215, § 5, emerg. eff. April 15, 1970.

liability. The rescission of an agreement altering the original obligation of a debtor, or impairing the remedy of a creditor, does not restore the liability of a guarantor who has been exonerated by such agreement. R.L.1910, § 1045.

The acceptance, by a creditor, of anything in partial satisfaction of an obligation, reduces the obligation of a guarantor thereof, in the same measure as that of a principal, but does not otherwise affect it. R.L.1910, § 1046.

Mere delay on the part of a creditor to proceed against the principal, or to enforce any other remedy, does not exonerate a guarantor. R.L.1910, § 1047.

A guarantor, who has been indemnified by the principal, is liable to the creditor to the extent of the indemnity, notwithstanding that the creditor, without the assent of the guarantor, may have modified the contract or released the principal. R.L.1910, § 1048.

guarantor. A guarantor is not exonerated by the discharge of his principal by operation of law, without the intervention or omission of the creditor. R.L.1910, § 1049.

A surety is one who, at the request of another, and for the purpose of securing to him a benefit, becomes responsible for the performance by the latter of some act in favor of a third person, or hypothecates property as security therefor. R.L.1910, § 1050.

One who appears to be a principal, whether by the terms of a written instrument, or otherwise, may show that he is in fact a surety, except as against persons who have acted on the faith of his apparent character of principal. R.L.1910, § 1051.

A surety cannot be held beyond the express terms of his contract, and if such contract prescribes a penalty for its breach, he cannot in any case be liable for more than the penalty. R.L.1910, § 1052.

In interpreting the terms of a contract of suretyship, the same rules are to be observed as in the case of other contracts. R.L.1910, § 1053.

Notwithstanding the recovery of judgment by a creditor against a surety, the latter still occupies the relation of surety. R.L.1910, § 1054.

Performance of the principal obligation, or an offer of such performance duly made as provided in this chapter exonerates a surety. R.L.1910, § 1055.

A surety is exonerated: 1. In like manner with a guarantor. 2. To the extent to which he is prejudiced by any act of the creditor which would naturally prove injurious to the remedies of the surety or inconsistent with his rights, or which lessens his security; or, 3. To the exte…

A surety has all the rights of a guarantor, whether he becomes personally responsible or not. R.L.1910, § 1057.

A surety may require his creditor to proceed against the principal, or to pursue any other remedy in his power which the surety cannot himself pursue, and which would lighten his burden; and if in such case the creditor neglects to do so, the surety is exonerated to the extent to…

A surety may compel his principal to perform the obligations when due. R.L.1910, § 1059.

If a surety satisfies the principal obligation, or any part thereof, whether with or without legal proceedings, the principal is bound to reimburse what he has disbursed, including necessary costs and expenses; but the surety has no claim for reimbursement against other persons, …

A surety, upon satisfying the obligations of the principal, is entitled to enforce every remedy which the creditor then has against the principal, to the extent of reimbursing what he has expended; and also to require all his cosureties to contribute thereto, without regard to th…