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Section 126 - Contract of guarantee surety principal debtor and creditor : Indian Contract Act 1872

 

What is Contract of guarantee surety principal debtor and creditor? Section 126 of Indian Contract Act 1872

Section 126 of Indian Contract Act 1872 : "Contract of guarantee surety principal debtor and creditor"

126. A "contract of guarantee" is a contract to perform the promise, or discharge the liability, of a third person in case of his default. The person who gives the guarantee is called the "surety"; the person in respect of whose default the guarantee is given is called the "principal debtor", and the person to whom the guarantee is given is called the "creditor". A guarantee may be either oral or written.

 

INDIAN CONTRACT ACT 1872

Section 126 - Contract of guarantee surety principal debtor and creditor

Section 127 - Consideration for guarantee

Section 128 - Suretys liability

Section 129 - Continuing guarantee

Section 130 - Revocation of continuing guarantee

 

 

Section 131 - Revocation of continuing guarantee by suretys death

Section 132 - Liability of two persons, primarily liable, not affected by arrangement between them that one shall be surety on other's default

Section 133 - Discharge of surety by variance in terms of contract

Section 134 - Discharge of surety by release or discharge of principal debtor

Section 135 - Discharge of surety when creditor compounds with, gives time to, or agrees not to sue, principal debtor

 

 

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

Section 137 - Creditors forbearance to sue does not discharge surety

Section 138 - Release of one co-surety does not discharge others

Section 139 - Discharge of surety by creditor's act or omission impairing surety's eventual remedy

Section 140 - Rights of surety on payment of performance

 

 

Section 141 - Suretys right to benefit of creditors securities

Section 142 - Guarantee obtained by misrepresentation invalid

Section 143 - Guarantee obtained by concealment invalid

Section 144 - Guarantee on contract that creditor shall not act on it until co-surety joins

Section 145 - Implied promise to indemnify surety

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