Section 682: Surety for a surety, and co-sureties

Supreme Court decisions interpreting this section

1. Supreme Court Judgment No. 2997/2562 (2019)

   Persons who bind themselves as sureties for the same obligation are liable as joint debtors under section 682 paragraph two, and as between themselves each bears an equal share. Where the creditor releases one of those joint debtors, section 296 puts the released debtor's share to the creditor's own account: it is the creditor who bears that loss, and it is not redistributed among the remaining co-sureties. A co-surety who settles under a debt restructuring agreement and performs it in full is released, the obligation is extinguished under section 340 with section 296, and a co-surety who pays the creditor cannot be subrogated to a claim against him.

   The plaintiff, the defendant and others had guaranteed the overdraft debt owed by one company to another, so they were joint debtors under section 682 paragraph two, each liable in an equal share. On 14 March 2012 the defendant entered a debt restructuring agreement with the creditor company under which he would pay 1,600,000 baht, and on completion the creditor would withdraw the seizure of five plots of land and bring no further proceedings against him. The creditor confirmed in writing that he had performed in full on 15 May 2012. The Supreme Court held that the creditor had thereby released the defendant, that the defendant's obligation as a co-surety liable as a joint debtor was extinguished under section 340 with section 296, and that the creditor had no further right to demand payment from him. The plaintiff therefore could not be subrogated to the creditor's rights against the defendant. Under section 296 the released share falls to the creditor, not to the other co-sureties.

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2. Supreme Court Judgment No. 2330/2538 (1995)

   Persons who guarantee the same debt at different times under separate contracts are still jointly liable as co-sureties under Section 682(2).

   Two defendants who separately guaranteed the same employment-related debt at different times and under separate contracts were still jointly liable as co-sureties under Section 682(2).

   Read the full decision (deka.in.th)

Curated decisions with case numbers verified against the Supreme Court database. English renderings are the firm's editorial translation for study.