Question

A surety may be discharged from liability ______.

• A. By notice of revocation in case of a continuing guarantee as regards future transaction
• B. Where the creditor, without the consent of the surety, makes an arrangement with the principal debtor for composition, or promises to give time or not to sue him, the surety will be discharged
• C. If the creditor does any act which is against the rights of the surety, or omits to do an act which his duty to the surety requires him to do, and the eventual remedy of the surety himself against the principal debtor is thereby impaired
• D. All of the above

Answer 1

Answer: (D)

All of the above

A surety maybe discharged from liability through following ways:

Section 131, Indian Contract Law, 1872: "Revocation of continuing guarantee by surety’s death.—The death of the surety operates, in the absence of any contract to the contrary, as a revocation of a continuing guarantee, so far as regards future transactions."

Section 133, Indian Contract Law, 1872: "Discharge of surety by variance in terms of contract.—Any variance, made without the surety’s consent, in the terms of the contract between the principal and the creditor, discharges the surety as to transactions subsequent to the variance."

Section 134, Indian Contract Law, 1872: "Discharge of surety by release or discharge of principal debtor.—The surety is discharged by any contract between the creditor and the principal debtor, by which the principal debtor is released, or by any act or omission of the creditor, the legal consequence of which is the discharge of the principal debtor."