WritingLaw (Page 182)

124. “Contract of indemnity” defined. A contract by which one party promises to save the other from loss caused to him by the contract ofRead More →

125. Right of indemnity-holder when sued. The promisee in a contract of indemnity, acting within the scope of his authority, is entitled to recover fromRead More →

126. “Contract of guarantee”, “surety”, “principal debtor” and “creditor”. A “contract of guarantee” is a contract to perform the promise, or discharge the liability, ofRead More →

127. Consideration for guarantee. Anything done, or any promise made, for the benefit of the principal debtor, may be a sufficient consideration to the suretyRead More →

128. Surety’s liability. The liability of the surety is co-extensive with that of the principal debtor, unless it is otherwise provided by the contract. Illustration-Read More →

129. Continuing guarantee. A guarantee which extends to a series of transaction, is called a “continuing guarantee“. Illustrations- (a) A, in consideration that B willRead More →

130. Revocation of continuing guarantee. A continuing guarantee may at any time be revoked by the surety, as to future transactions, by notice to theRead More →

131. Revocation of continuing guarantee by surety’ death. The death of the surety operates, in the absence of any contract to the contrary, as aRead More →

132. Liability of two persons, primarily liable, not affected by arrangement between them that one shall be surety on other’s default. Where two persons contractRead More →

133. Discharge of surety by variance in terms of contract. Any variance made without the surety’s consent, in the terms of the contract between theRead More →

134. Discharge of surety by release or discharge of principal debtor. The surety is discharged by any contract between the creditor and the principal debtor,Read More →

135. Discharge of surety when creditor compounds with, gives time to, or agrees not to sue, principal debtor. A contract between the creditor and theRead More →

136. Surety not discharged when agreement made with third person to give time to principal debtor. Where a contract to give time to the principalRead More →

137. Creditor’s forbearance to sue does not discharge surety. Mere forbearance on the part of the creditor to sue the principal debtor or to enforceRead More →

138. Release of one co-surety does not discharge other. Where there are co-sureties, a release by the creditor of one of them does not dischargeRead More →

139. Discharge of surety by creditor’s act or omission impairing surety’s eventual remedy. If the creditor does any act which is inconsistent with the rightRead More →