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TITLE. Repealed · CHAPTERVIII OF INDEMNITY AND GUARANTEE

Section 136: Surety not discharged when agreement made with third person to give time to principal debtor

The Indian Contract Act, 1872

Where a contract to give time to the principal debtor is made by the creditor with a third person, and not with the principal debtor, the surety is not discharged.

Illustration

C, the holder of an overdue bill of exchange drawn by A as surety for B, and accepted by B, contracts with M to give time to B. A is not discharged.

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