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handle is hein.ali/relwsec0533 and id is 1 raw text is: The American Law Institute
Tentative Draft No. 4
Items Suggested by the Reporter, Mr. Hanna, for Particular
Consideration by the Members of the Institute of this
Draft at the Meeting, May 16-18, 1940.
Discussion is not confined to the items listed here,
You are earnestly requested to raise any points you
desire to have considered.
§ 114.
1. Is a surety ever discharged where under any
circumstances the creditor cannot return what he has
received from the principal, or should one recognize
the possibility that the surety may be discharged by a
performance of the principal but that if the creditor
is compelled to surrender what lie has received, the
surety's obligation is revived?
§ 117.
2. Where the surety has contracted without
knowledge of fraud by the creditor on the principal,
should the surety be allowed to assert this fraud as
a defense (a) without proof that the principal wishes
to take advantage of the defense, (b) where the prin-
cipal has deprived himself of the defense7
§ 121.
3. Should the surety have a defense where the
creditor would ordinarily have a duty of disclosure,
but where such disclosure would be violative of some
duty of the creditor to another, for example because
of a confidential relation?

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