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Under section 146 of the Indian Contract Act, 1872, how do co-sureties for the same debt share the…

Section 146 allocates the debt left unpaid by the principal debtor equally among co-sureties as between themselves, unless they contracted otherwise. Section 147 limits each…

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Under section 146 of the Indian Contract Act, 1872, how do co-sureties for the same debt share the amount left unpaid by the principal debtor, assuming they agreed to no different allocation and each guarantee covers its share?

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Answer and explanation

Correct answer A

Section 146 allocates the debt left unpaid by the principal debtor equally among co-sureties as between themselves, unless they contracted otherwise.

Section 147 limits each co-surety’s contribution to the amount for which that co-surety is bound.

Option feedback

Option A

Section 146 gives each co-surety an equal share of the unpaid amount as between themselves.

Option B

The statutory default is equal contribution on the stated facts.

Option C

The provision does not allocate contribution by the co-sureties’ financial means.

Option D

The timing of each guarantee does not set the contribution shares.

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