Section 136
Surety not discharged when agreement made with third person to give time to principal debtor
Chapter 9: Of indemnity and guarantee
Where a contract to give time to the principal debtor is made by the creditor with a third person, and not with the principal debtor, the surety is not discharged.
Illustration.
C, the holder of an overdue bill of exchange drawn by A as surety for B, and accepted by B, contracts with M to give time to B. A is not discharged.
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.
Related sections
- 133Discharge of surety by variance in terms of contract
- 134Discharge of surety by release or discharge of principal debtor
- 135Discharge of surety when creditor compounds with, gives time to, or agrees not to sue, principal debtor
- 137Creditor‟s forbearance to sue does not discharge surety
- 138Release of one co-surety does not discharge others
- 139Discharge of surety of creditor‟s act or omission impairing surety‟s eventual remedy