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S1, S2 and S3 are sureties to C for the sum of Rs. 12,000 lent to P. There is a contract between S1, S2…

Under section 146 of the Indian Contract Act, 1872, co-sureties contribute equally only in the absence of a contract to the contrary. Here S1, S2 and S3 agreed to bear…

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S1, S2 and S3 are sureties to C for the sum of Rs. 12,000 lent to P. There is a contract between S1, S2 and S3 that the first surety is to be responsible to the extent of one-fourth, the second surety to the extent of one-fourth, and the third surety to the extent of one-half. P makes default in payment. As between the co-sureties S1:S2:S3, the amount payable as per the Indian Contract Act, 1872 is:

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Correct answer C

Under section 146 of the Indian Contract Act, 1872, co-sureties contribute equally only in the absence of a contract to the contrary. Here S1, S2 and S3 agreed to bear one-fourth, one-fourth and one-half, so on P's default on Rs. 12,000 they pay "3000:3000:6000". Equal shares of Rs. 4,000 each would ignore their agreement, and the other splits match no agreed proportion.

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