Discharge of Surety’s Liabilities under Contract of Guarantee: Comprehensive Study with Cases and Laws
Authors: Sneha Mukherjee
Country: India View / Download Full Text PDF File
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.