Discharge of Surety’s Liabilities under Contract of Guarantee: Comprehensive Study with Cases and Laws

Authors: Sneha Mukherjee

Country: India

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Abstract: A contract of guarantee, under section 126 of the Indian Contract Act refers to a contract to perform a promise or discharge the liability of a third person in case of his default. The functions of a contract of guarantee is to enable a person to get loan, or goods on credit or an employment. There must be a conditional promise to be liable on the default of the principal debtor. A liability incurred independently of the default will not fall within the ambit of guarantee. However, under some circumstances, the surety can be discharged of his liabilities. How a surety can be discharged of his liabilities in a contract of guarantee is discussed in this paper.

Keywords: Liability, Surety, Guarantee, Contractual Obligations

Paper Id: 1164

Published On: 2021-07-25

Published In: Volume 9, Issue 4, July-August 2021

Cite This: Discharge of Surety’s Liabilities under Contract of Guarantee: Comprehensive Study with Cases and Laws - Sneha Mukherjee - IJIRMPS Volume 9, Issue 4, July-August 2021.

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