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Mohit lends Rs. One Lakh to Som where Narain was the surety. The contract in this transaction provided…

Under Section 128 of the Indian Contract Act, a surety's liability is co-extensive with that of the principal debtor unless it is otherwise provided by the contract, so a…

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Mohit lends Rs. One Lakh to Som where Narain was the surety. The contract in this transaction provided that the liability of Narain is limited to Rs. 50,000/-. The contract is :

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Correct answer D

Under Section 128 of the Indian Contract Act, a surety's liability is co-extensive with that of the principal debtor unless it is otherwise provided by the contract, so a guarantee capping Narain's liability at Rs. 50,000 is "Valid".

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