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“The liability of the surety is co-extensive with that of the principal debtor.” This rule is provided…

Under Section 128 of the Indian Contract Act, 1872 ('Surety's liability'), the liability of the surety is co-extensive with that of the principal debtor, unless it is…

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“The liability of the surety is co-extensive with that of the principal debtor.” This rule is provided under the Indian Contract Act, 1872:

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Answer and explanation

Correct answer C

Under Section 128 of the Indian Contract Act, 1872 ('Surety's liability'), the liability of the surety is co-extensive with that of the principal debtor, unless it is otherwise provided by the contract. Section 126 defines a contract of guarantee, Section 127 specifies what constitutes sufficient consideration for a guarantee, and Section 129 defines a continuing guarantee.

Option feedback

Option A

Incorrect. Section 126 of the Indian Contract Act, 1872 defines 'contract of guarantee', 'surety', 'principal debtor', and 'creditor'.

Option B

Incorrect. Section 127 of the Indian Contract Act, 1872 deals with consideration for guarantee.

Option C

Correct. Section 128 of the Indian Contract Act, 1872 ('Surety's liability') provides that 'The liability of the surety is co-extensive with that of the principal debtor, unless it is otherwise provided by the contract.'

Option D

Incorrect. Section 129 of the Indian Contract Act, 1872 defines a 'continuing guarantee'.

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