Section 128
Surety‟s liability
Chapter 9: Of indemnity and guarantee
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.
The Indian Contract Act, 1872 (Act No. 9 of 1872). From the updated text on India Code, with later amendments. Being checked against the official copy; amendment notes are not shown yet.