Page:United States Statutes at Large Volume 76A.djvu/314

–218– -218§ 3714. Obligations which need not be in writing A promise to answer for the obligation of another, in any of the following cases, is deemed an original obligation of the promisor, and need not be in writing: (1) where the promise is made by one who lias received property of another upon an undertaking to apply it pursuant to the promise, or by one who has received a discharge from an obligation in whole or in part in consideration of the promise; (2) where the creditor parts with value, or enters into an obligation, in consideration of the obligation in respect to which the promise is made, in terms or under circumstances such as to render the party making the promise the principal debtor, and the person in whose behalf it is made, his surety; (3) where the promise, being for an antecedent obligation of another, is made upon the consideration that the party receiving it cancels the antecedent obligation, accepting the new promise as a substitute therefor; or upon the consideration that the party receiving it releases the property of another from a levy, or his person from imprisonment under an execution on a judgment obtained upon the antecedent obligation; (4) where the promise is upon a consideration beneficial to the promisor, whether moving from either party to the antecedent obligation or from another person; (5) where a factor undertakes, for a commission, to sell merchandise and guarantee the sale; or (6) where the holder of an instrument for the payment of money, upon which a third person is or may become liable to him, transfers it in payment of a precedent debt of his own, or for a new consideration, and in connection with such transfer enters into a promise respecting such instrument. § 3715. Acceptance of guaranty; notice A mere offer to guarantee is not binding until notice of its acceptance is communicated by the guarantee to the guarantor; but an absolute guaranty is binding upon the guarantor without notice of acceptance. Subchapter III—Interpretation of Guaranty § 3731. Guaranty of incomplete contract In a guaranty of a contract, the terms of which are not then settled, it is implied that its terms shall be such as will not expose the guarantor 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. § 3732. Guaranty that an obligation is good or collectible A guaranty to the effect that an obligation is good, or is collectible, imports that the debtor is solvent and that the demand is collectible by the usual legal proceedings, if taken with reasonable diligence. § 3733. Same; recovery A guaranty, such as is provided by section 3732 of this title, is not discharged by an omission to take proceedings upon the principal debt, or upon any collateral security for its payment, if no part of the debt could have been collected thereby. § 3734. Same; guarantor's liability In the cases provided by section 3733 of this title, the removal of the principal from the Canal Zone, leaving no property therein from which the obligation might be satisfied, is equivalent to the insol-

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