Discharge of the principal in bankruptcy may prevent performance of a con- 1216 A promise to give time supported by an oral counter-promise within the Stat- 1229 Surrender of security by the creditor discharges the surety pro tanto. Impairment of security by creditor's negligent inaction.. 1233 Whether surrender of security of less value than the claim ever totally dis- 1234 Notice when required must be given within a reasonable time.. Variation or alteration of the contract between creditor and principal if it A change in the terms of the contract between principal and creditor may discharge the surety though not affecting the terms of his contract..... 1241 A variation of the contract between creditor and principal impliedly author- The creditor's variation in the performance of his contract with the principal If the creditor is party to the fraud or has notice of it from the form of the in- 1246 Surety is bound by the principal's filling of blanks though in violation of in- 1247 Failure of the creditor to disclose material facts at the time the surety's con- 1249 Equity will give relief against the surety in case of accident or mistake.... 1257 Injurious action by the creditor will discharge a surety, though the creditor when the obligation was created was ignorant of the suretyship relation. 1258 At common law a party to a negotiable instrument apparently a principal but in fact a surety will be discharged by the creditor's inequitable conduct When accommodation parties on negotiable paper are co-sureties. Liability of accommodation indorsers on negotiable instruments is presum- 1262 The surety is entitled to be subrogated to securities held by the creditor... 1266 The surety is subrogated to intangible advantages of the creditor.... 1267 Subrogation to rights of the creditor which have been legally destroyed by BOOK IV PERFORMANCE OF CONTRACTS CHAPTER XXI GENERAL RULES FOR THE INTERPRETATION OR CONSTRUCTION OF CONTRACTS AND THE PAROL EVIDENCE RULE Different standards of interpretation must be applied to different classes of contracts... 604 Standard of interpretation for informal agreements. 605 Formal and written contracts may exist though parties attach different meanings to the language... 606 Standard of interpretation where a writing has been adopted. 607 The local standard is preferable to the normal standard. . 608 Clear and unambiguous words...... 609 Intent of the parties where the contract is written is ineffective unless expressed in the writing... 610 An exclusively mutual standard is not applicable. 611 Codes and abbreviations... 612 Meaning peculiar to the parties may be given to words if the words appropriately express that meaning. 613 Technical meaning is sometimes given to language in violation of apparent intention..... 614 Adoption of existing law into a contract.. 615 Respective functions of the court and the jury. 616 Methods of determining the local meaning of a writing. 617 Primary rules of interpretation... 618 Secondary rules: The main purpose of the instrument will be given effect... 619 Secondary rules: The instrument will be construed if possible so that it shall be effective and reasonable.... 620 Secondary rules: Language will be construed most strongly against the party using it.. 621 Secondary rules: Written matter in a contract is given greater effect than printed matter... 622 Secondary rules: An interpretation given by the parties themselves will be favored... 623 Secondary rules: Conflict between prior and subsequent clauses.. 624 Secondary rules: Guaranties. 625 Secondary rules: Contracts affecting a public interest. 626 |