Section § 2792

Explanation

This law states that when someone promises to be responsible for someone else's debt at the same time that the debt itself is created, the promise doesn't need anything else to make it valid because it's part of the original deal. However, if this guarantee comes later, there needs to be something extra added to make it valid.

Where a suretyship obligation is entered into at the same time with the original obligation, or with the acceptance of the latter by the creditor, and forms with that obligation a part of the consideration to him, no other consideration need exist. In all other cases there must be a consideration distinct from that of the original obligation.

Section § 2793

Explanation
In California, if someone agrees to act as a surety, which means they promise to take on someone's debt or obligation if that person doesn't pay, this agreement must be in writing and signed by the surety. However, the document doesn't need to state why the promise is being made, also known as the 'consideration.'
Except as prescribed by the next section, a suretyship obligation must be in writing, and signed by the surety; but the writing need not express a consideration.

Section § 2794

Explanation

This law explains situations where someone promises to pay the debt of someone else, but this promise is considered their own original obligation, so it doesn't need to be written down. This can happen if they've received someone's property and agreed to use it as promised, or they're getting a benefit from making the promise. It can also occur if a creditor gives up something of value, the old debt is canceled for a new promise, or a person's property is released from seizure or they avoid imprisonment due to the promise. Other examples include a business agent pledging to sell goods for a commission while also acting as a guarantor, or when someone hands over a financial instrument as part of settling their own debt while making a promise about that instrument.

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)CA Civil Law Code § 2794(1) Where the promise is made by one who has received property of another upon an undertaking to apply it pursuant to such promise; or by one who has received a discharge from an obligation in whole or in part, in consideration of such promise;
(2)CA Civil Law Code § 2794(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)CA Civil Law Code § 2794(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)CA Civil Law Code § 2794(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)CA Civil Law Code § 2794(5) Where a factor undertakes, for a commission, to sell merchandise and act as surety in connection with the sale;
(6)CA Civil Law Code § 2794(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.

Section § 2795

Explanation

If someone offers to be a surety, which means they promise to take responsibility for another person's debt if they don't pay, that offer can be accepted either by taking action based on it or by accepting some other benefit. If the surety's promise is unconditional, they are bound by it even if they don't get a formal notice that their offer was accepted.

Unless notice of acceptance is expressly required, an offer to become a surety may be accepted by acting upon it, or by acceptance upon other consideration. An absolute suretyship obligation is binding upon the surety without notice of acceptance.