Mr. Chickilini is a surety for Wayne on a debt owed to Melvin. If Wayne fails to pay, what defenses might Mr. Chickilini have to avoid payment of the debt?

Answer 1

Possible defenses include: (a) that Melvin extended the time for payment without consulting Mr. Chickilini; (b) that Melvin failed to notify Mr. Chickilini of any events which might increase his risk; (c) that Wayne never received any consideration; (d) that the debt is the result of an illegal contract or one that is impossible to perform; (e) an intended cosurety, as named in the contract instrument, did not sign; (f) Mr. Chickilini did not assent to a modification of the contracts entered between Wayne and Melvin and he is an uncompensated surety; (g) Melvin released the value of the security; (h) fraud or duress by Melvin; (i) incapacity of Mr. Chickilini; and (j) noncompliance with the statute of frauds. Also, payment by Wayne or Melvin's refusal to accept tender of payment, a forged signature of Wayne's, or Melvin's fraudulent, material alteration of the contract instrument discharges Mr. Chickilini.