In the absence of any provision in the guarantee to the contrary, the creditor's mere omission to sue…
The creditor's mere omission to sue does not discharge the surety. Section 137 of the Indian Contract Act, 1872 preserves the surety's liability where the guarantee contains…
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In the absence of any provision in the guarantee to the contrary, the creditor's mere omission to sue the principal debtor within the period of limitation:
Answer and explanation
Correct answer B
The creditor's mere omission to sue does not discharge the surety. Section 137 of the Indian Contract Act, 1872 preserves the surety's liability where the guarantee contains no contrary provision; mere forbearance is different from a binding agreement not to sue.
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Gujarat SET (GSET)