Site navigation

Under the Indian Contract Act, 1872, a surety has not consented to any of these arrangements. Which…

Section 136 preserves the guarantee when the agreement to give time is made with a third person. By contrast, sections 133 to 135 provide for discharge in the circumstances…

Choose your answer

Under the Indian Contract Act, 1872, a surety has not consented to any of these arrangements. Which event leaves the surety liable for a default arising from a later transaction under the guarantee?

Select one answer
Answer and explanation

Correct answer A

Section 136 preserves the guarantee when the agreement to give time is made with a third person. By contrast, sections 133 to 135 provide for discharge in the circumstances described by an unconsented variation, release or a qualifying agreement with the principal debtor.

Option feedback

Option A

Section 136 preserves the surety's liability where the creditor agrees with a third person to give the principal debtor time.

Option B

Under section 133, an unconsented variation discharges the surety for transactions after the variation.

Option C

A contract releasing the principal debtor discharges the surety under section 134.

Option D

A binding agreement with the principal debtor not to sue discharges the surety unless the surety assents, under section 135.

Practice for these exams

Related question papers

Related exam syllabi

Related questions in this topic