Bare Act · Indian Contract Act, 1872 · Chapter VIII

Chapter VIII · Sections

124 · “Contract of indemnity” defined. 125 · Rights of indemnity-holder when... 126 · “Contract of guarantee”, “surety”,... 127 · Consideration for guarantee. 128 · Surety’s liability. 129 · “Continuing guarantee”. 130 · Revocation of continuing... 131 · Revocation of continuing guarantee... 132 · Liability of two persons,... 133 · Discharge of surety by variance in... 134 · Discharge of surety by release or... 135 · Discharge of surety when creditor... 136 · Surety not discharged when... 137 · Creditor’s forbearance to sue does... 138 · Release of one co-surety does not... 139 · Discharge of surety by creditor’s... 140 · Rights of surety on payment or... 141 · Surety’s right to benefit of... 142 · Guarantee obtained by... 143 · Guarantee obtained by concealment... 144 · Guarantee on contract that... 145 · Implied promise to indemnify... 146 · Co-sureties liable to contribute... 147 · Liability of co-sureties bound in...

137

Creditor’s forbearance to sue does not discharge surety.

Mere forbearance on the part of the creditor to sue the principal debtor or to enforce any other remedy against him does not, in the absence of any provision in the guarantee to the contrary, discharge the surety.

Illustration

B owes to C a debt guaranteed by A. The debt becomes payable. C does not sue B for a year after the debt has become payable. A is not discharged from his suretyship.

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