The validity of a deed of suretyship in instances where the principal loan agreement is invalid

Abstract

An analysis of the accessory nature of the suretyship agreement particularly in instances where the principal agreement to which it attaches is invalid. The mini-dissertation considers the decision of the Constitutional Court in Shabangu v Land and Agricultural Development Bank of South Africa and Others where it was found that on the facts brought before it, the deed of suretyship concluded between the creditor and the surety was invalid as a result of the principal agreement also being invalid. This judgment will be critically considered and compared to Panamo Properties 103 (Pty) Ltd v Land and Agricultural Development Bank of South Africa.