Surety

Rights of Surety

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Indemnity, Guarantee , Bailment, Pledge, Agency, Partnership and Sale of Goods

A surety has certain rights against the principal debtor, the creditor and the co-sureties. His rights against each one of them are being discussed hereunder : Rights against the Principal Debtor 1. Right of Subrogation (Section 140) When the principal debtor makes a default in the performance of his duty, and on such a default, … Read more

Discharge of surety from liability

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Indemnity, Guarantee , Bailment, Pledge, Agency, Partnership and Sale of Goods

When the liability of surety, which he had undertaken under a contract of guarantee, is extinguished or comes to an end, he is said to be discharged from liability. The modes of discharge of a surety, as recognized by the Indian Contract Act, are as under: 1. Revocation by the surety. (Section 130). 2. By … Read more