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TENTATIVE DRAFT 4, ITEMS SUGGESTED . . . FOR CONSID. [i] (May 16-18, 1940)

handle is hein.ali/relwsec0533 and id is 1 raw text is: The American Law Institute RESTATEMENT OF SECURITY Tentative Draft No. 4 Items Suggested by the Reporter, Mr. Hanna, for Particular Consideration by the Members of the Institute of this Draft at the Meeting, May 16-18, 1940. Discussion is not confined to the items listed here, You are earnestly requested to raise any points you desire to have considered. § 114. 1. Is a surety ever discharged where under any circumstances the creditor cannot return what he has received from the principal, or should one recognize the possibility that the surety may be discharged by a performance of the principal but that if the creditor is compelled to surrender what lie has received, the surety's obligation is revived? § 117. 2. Where the surety has contracted without knowledge of fraud by the creditor on the principal, should the surety be allowed to assert this fraud as a defense (a) without proof that the principal wishes to take advantage of the defense, (b) where the prin- cipal has deprived himself of the defense7 § 121. 3. Should the surety have a defense where the creditor would ordinarily have a duty of disclosure, but where such disclosure would be violative of some duty of the creditor to another, for example because of a confidential relation?