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Y owes to Z a debt guaranteed by X. The debt becomes payable. Z does not sue Y for a year after the…

X is not discharged from his suretyship. Under section 137 of the Indian Contract Act, 1872, the creditor’s mere delay in suing the principal debtor does not discharge the…

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Y owes to Z a debt guaranteed by X. The debt becomes payable. Z does not sue Y for a year after the debt has become payable. In this case—

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Correct answer B

X is not discharged from his suretyship. Under section 137 of the Indian Contract Act, 1872, the creditor’s mere delay in suing the principal debtor does not discharge the surety unless the guarantee provides otherwise.

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