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C is the holder of an overdue bill of exchange drawn by A as surety for B and accepted by B. Without…

The Illustration to section 136 concludes that "A is not discharged". Under section 136, where a contract to give time to the principal debtor is made by the creditor "with…

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C is the holder of an overdue bill of exchange drawn by A as surety for B and accepted by B. Without A's assent, C contracts with M, a third person, to give time to B. Is A discharged?

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Correct answer B

The Illustration to section 136 concludes that "A is not discharged". Under section 136, 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". Section 135 discharges a surety only where the creditor promises time to the principal debtor himself.

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