This section is from the book "Popular Law Library Vol9 Bills And Notes, Guaranty And Suretyship, Insurance, Bankruptcy", by Albert H. Putney. Also available from Amazon: Popular Law-Dictionary.
One who is of unsound mind, cannot bind himself upon a contract of suretyship, even though the creditor acted in good faith in entering into the contract, and was not aware of the fact of insanity in the surety.7 A more difficult question as to liability, has been presented to the courts, in the case where the principal debtor is a lunatic, and one becomes surety on the lunatic's contract, the question being, can the surety be held. The question is answered in the & H., 46 Iowa, 62 affirmative, the grounds for the decision being the same as given in the case of the holding a surety liable on his contract to answer for debt of a married woman.8 It being assumed that the surety knew of the disability of the principal debtor, and to have made his contract with that fact in mind, and the surety being himself competent to contract, is bound.
4 Low Bros. & Co. vs. Anderson, 41 Iowa, 476.
5 Gosmar vs. Cruger, 69 N. Y., 87.
6 Smith vs. Hardman, 99 Ga., 38.
7 Van r'atton & Marks vs. Reals,
 
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