Legal Definitions - cautionry

Cautionry is a term used in Scots law to describe a legal commitment where one person agrees to be responsible for the debt, obligation, or good conduct of another individual or entity. Essentially, it is the act of providing a guarantee or surety, meaning if the primary person fails to meet their obligation, the "cautioner" (the one providing the cautionry) becomes legally liable.

Here are a few examples to illustrate this concept:

• Student Loan Guarantee: Imagine a young adult in Scotland applying for a student loan. The bank might require a parent to act as a cautioner. In this scenario, the parent undertakes the cautionry, meaning they legally commit to repaying the loan if their child, for any reason, defaults on their payments. The parent's obligation only activates if the primary borrower (the student) fails to meet their responsibility.

• Bail in Criminal Proceedings: If someone is accused of a crime in Scotland and granted bail, the court might require a cautioner. This person provides cautionry by promising to pay a specified sum of money to the court if the accused fails to appear for their scheduled court dates. The cautioner's legal obligation ensures the accused's attendance, and they become liable for the sum if the accused absconds.

• Business Contract Performance: A small construction company in Scotland might bid for a large project. The client, to ensure the project's completion and quality, might require the company's director to provide cautionry. This means the director personally guarantees that the company will fulfill all terms of the contract. If the construction company fails to complete the work or breaches the contract, the director, as the cautioner, becomes personally liable for the damages or completion costs.