Section I The Elements of Suretyship

Article 772

Suretyship is a contract whereby a person guarantees the performance of an obligation by giving an undertaking to the creditors to fulfil such obligation should the debtor fail to do so.

Article 773

Suretyship can only be established by writing, even if the principal obligation can be established by oral evidence.

Article 774

When a debtor undertakes to offer a surety, he is bound to produce a solvent person residing in Egypt or an adequate real security instead of the surety.

Article 775

Suretyship may be given without the knowledge and even in spite of the opposition of the debtor.

Article 776

Suretyship is valid only if the obligation to which it applies is valid.

Article 777

When a person guarantees the obligation of a debtor who is legally incapable and such guarantee is given because of the debtor's lack of capacity, the surety is bound to perform the obligation if the guaranteed debtor fails to do so himself.

Article 778

Suretyship may be entered into in respect of a future debt, if the amount for which the guarantee is given is fixed beforehand. Suretyship may also be entered into in respect of a conditional liability.

A surety, however, who has given his guarantee for a future debt, but has not fixed the duration of such guarantee, may revoke his guarantee at any time provided that the guaranteed debt has not been created.

Article 779

Suretyship entered into in respect of a commercial debt is deemed to be a civil act, even if the surety is a trader.

The suretyship resulting from backers' signatures and endorsements on negotiable instruments, is always deemed to be a commercial act.

Article 780

Suretyship cannot be entered into in respect of a sum greater than that due by the debtor, nor can it be subject to more onerous conditions than the debt guaranteed.

Suretyship may be entered into in respect of a smaller sum and subject to less onerous conditions.

Article 781

In the absence of an express agreement, suretyship extends to the accessories of the debt, to the expenses of the first demand for payment and to the expenses incurred after notice has been given to the surety.