Suretyship by Operation of Law Law and Legal Definition

Suretyship by operation of law means a suretyship in which a third party promises a debtor to accept and pay the debt that the debtor owes to a creditor. Hence, a suretyship by operation of law results where a debtor's obligation has been assumed by someone else. It usually arises by the extension of privileges of suretyship to parties already bound upon some other contract.