LawgistThe Indian Contract Act
128Surety's liability
The liability of the surety is co- extensive with that of the principal debtor, unless it is otherwise provided by the contract.
Illustration
A guarantees to B the payment of a bill of exchange by C, the acceptor. The bill is dishonoured by C. A is liable, not only for the amount of the bill, but also for any interest and charges which may have become due on it.
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OF INDEMNITY AND GUARANTEE
- 124 "Contract of indemnity" define
- 125 Rights of indemnity-holder when sued
- 126 "Contract of guarantee", "surety", "principal debtor" and "creditor"
- 127 Consideration for guarantee
- 128 Surety's liability
- 129 "Continuing guarantee"
- 130 Revocation of continuing guarantee
- 131 Revocation of continuing guarantee by surety's death
- 132 Liability of two persons, primarily liable, not affected by arrangement between them that one shall be surety on others default
- 133 Discharge of surety by variance in terms of contract
- 134 Discharge of surety by release or discharge of principal debtor
- 135 Discharge of surety when creditor compounds with, gives time to, or agrees not to sue, principal debtor
- 136 Surety not discharged when agreement made with third person to give time to principal debtor
- 137 Creditor's forbearance to sue does not discharge surety
- 138 Release of one co-surety does not discharge others
- 139 Discharge of surety of creditor's act or omission impairing surety's eventual remedy
- 140 Rights of surety on payment or performance
- 141 Surety's right to benefit of creditor's securities
- 142 Guarantee obtained by misrepresentation invalid
- 143 Guarantee obtained by concealment invalid
- 144 Guarantee on contract that creditor shall not act on it until co-surety joins
- 145 Implied promise to indemnify surety
- 146 Co-sureties liable to contribute equally
- 147 Liability of co-sureties bound in different sums
