Section 140
Rights of surety on payment or performance
Chapter 9: Of indemnity and guarantee
Where a guaranteed debt has become due, or default of the principal debtor to perform a guaranteed duty has taken place, the surety upon payment or performance of all that he is liable for, is invested with all the rights which the creditor had against the principal debtor.
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
- 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
- 141Surety‟s right to benefit of creditor‟s securities
- 142Guarantee obtained by misrepresentation invalid
- 143Guarantee obtained by concealment invalid