38. Prior party
a principal in respect of each subsequent party.-As between the parties
so liable as sureties, each prior party is, in the absence of a contract to
the contrary. Also liable thereon as a principal debtor in respect of each subsequent
party.
ILLUSTRATION
A draws a bill payable to his own order on B, who accepts, A afterwards endorses the bill to C, C to D to E. As between E and B, B is the principal debtor, and A, C and D are his sureties. As between E and A., A is the principal debtor, and C and D are his sureties. As between E and C, C is the principal debtor and D is his surety. |
