Discharge of surety | Indian Contract Act | Contract of Guarantee | BCom | Law скачать в хорошем качестве

Discharge of surety | Indian Contract Act | Contract of Guarantee | BCom | Law

(1) Discharge by Revocation: (a) Notice of revocation : A continuing guarantee may at any time be revoked by the surety as to future transactions by notice to the creditor (Sec. 130). (b) Death of surety : "The death of a surety operates in the absence of any contract to the contrary as revocation of a continuing guarantee, so far as regards to future transactions" (Sec. 131). (c) Novation : A surety may be making a new contract, discharge himself (Sec. 62). (2) Discharge by conduct of Creditor: (a) Variance in terms of contract: "Any variance, made without the surety's consent, in the terms of the contract between the principal debtor & creditor, discharges the surety as to transactions subsequent to the variance (Sec. 133) (b)Discharge of the principal debtor : The surety is discharged by any contract between the creditor and 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 (Sec. 134) (c) Compounding by creditor with principal debtor : "A contract between the creditor & principal debtor by which the creditor makes a composition with or promises to give time to or not to sue, the principal debtor discharges the surety unless the surety assents to such contracts" (Sec. 135) (d) Creditor's act: "If the creditor does any act which is inconsistent with the rights of the surety or omits to do any 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, the surety is discharged" (Sec. 139). (e) Loss of security : " A surety is entitled to the benefit of every security which the creditor has against the principal debtor" (Sec. 141). (3) By invalidation: (a) Guarantee obtained by misrepresentation : "Any guarantee which has been obtained by means of misrepresentation made by the creditor or with his knowledge & assent concerning a material part of the transaction, is invalid" (Sec. 142). (b) Guarantee obtained by concealment : "Any guarantee which the creditor has obtained by means of keeping silence as to material circumstances is invalid" (Sec. 143). (c) Failure of a co-surety to join as a surety : "Where a person gives guarantee upon a contract that a creditor shall not act upon it until another person has joined it as co-surety, the guarantee is not valid if that other person does not join" (Sec. 144). (d) Failure of consideration : A surety will be discharged on the failure of consideration as between the creditor & the principal debtor. Such a failure of consideration must be a substantial one which may operate so as to discharge the surety. #surety #dischargeofsurety #indiancontractact1872 #indiancontractact #law #brf #himanshunandwani #learnwithhimanshunandwani #vnsgu #bcomhonours #icai #bcomsem5