Section 137
Creditor‟s forbearance to sue does not discharge surety
Chapter 9: Of indemnity and guarantee
Mere forbearance on the part of the creditor to sue the principal debtor or to enforce any other remedy against him does not, in the absence of any provision in the guarantee to the contrary, discharge the surety.
Illustration.
B owes to C a debt guaranteed by A. The debt becomes payable. C does not sue B for a year after the debt has become payable. A is not discharged from his suretyship.
The Indian Contract Act, 1872 (Act No. 9 of 1872). From the updated text on India Code, with later amendments. Being checked against the official copy; amendment notes are not shown yet.
Related sections
- 134Discharge of surety by release or discharge of principal debtor
- 135Discharge of surety when creditor compounds with, gives time to, or agrees not to sue, principal debtor
- 136Surety not discharged when agreement made with third person to give time to principal debtor
- 138Release of one co-surety does not discharge others
- 139Discharge of surety of creditor‟s act or omission impairing surety‟s eventual remedy
- 140Rights of surety on payment or performance