Suretyship

The Supreme Court of the Czech Republic dealt in its decision as of 18^th August 2015, Reference Number: 23 Cdo 1292/2015, with a following situation:

A lessor and a lessee (a limited liability company) concluded a leasing contract which included the general terms and conditions. The general terms and conditions stipulated that a person who signs a leasing contract on behalf of a lessee shall be liable as a surety for the entire debt of a lessee. Both a leasing contract and the general terms and conditions were signed on behalf of a lessee by its Managing Director; the signature of a Managing Director as a surety was missing.

The Supreme Court concluded that a suretyship can also be created by a declaration that forms a part of the general terms and conditions. If a leasing contract and the general terms and conditions were signed by a Managing Director on behalf of a lessee, it was not necessary to attach another signature of a Managing Director as a surety.