Lesson: Compensated vs. Gratuitous Surety

In this lesson, Nick Palazzolo, CPA, dives into the distinctions between compensated and gratuitous sureties, breaking down their differences in rights, obligations, and conditions for release. Exploring scenarios where someone may become a surety for different reasons—be it for a fee as part of a professional service or out of goodwill as a friend or family member—Nick clarifies the nuances between the two. He elaborates on their commonalities and the specific circumstances that can lead to the release of a gratuitous surety as opposed to a compensated one, such as variations in the obligation, extensions of time, and loss of security. With a keen focus on the practical implications of these differences, Nick ensures a clear understanding of these concepts while maintaining an engaging atmosphere.