California Codes, Civil Code - CIV, Division 3 — Obligations, Part 4 — Obligations Arising from Particular Transactions, Title 13 — Suretyship, Article 3 — Interpretation of Suretyship, Section 2799
In an assumption of liability as surety in connection with a contract, the terms of which are not then settled, it is implied that its terms shall be such as will not expose the surety to greater risks than he would incur under those terms which are most common in similar contracts at the place where the principal contract is to be performed.
Notes
Sets an implied limit when surety liability is assumed before the related contract terms are settled: the eventual terms must not expose the surety to greater risks than the terms most common in similar contracts where the principal contract will be performed. The rule applies to that unsettled-contract assumption of liability.
Use as reference
Lexinter.net | California Code, Civil Code - CIV § 2799 | https://laws.lexinter.net/codes/california/civil-code/division-3/part-4/title-13/article-3/section-2799