Section 133 - Discharge of surety by variance in terms of contract : Indian Contract Act
What is the meaning of Discharge of surety by variance in terms of
contract? Section 133 of Indian Contract Act
Section 133 of Indian Contract Act 1872 : "Discharge of surety
by variance in terms of contract"
133. Any variance, made without the surety's consent, in the
terms of the contract between the principal (debtor) and the
creditor, discharges the surety as to transactions subsequent to
(a) A becomes surety to C for B's conduct as a manager in C's
bank. Afterwards, B and C contract, without A's consent, that
B's salary shall be raised, and that he shall become liable for
one-fourth of the losses on overdrafts. B allows a customer to
overdraw, and the bank loses a sum of money. A is discharged
from his suretyship by the variance made without his consent and
is not liable to make good this loss.
(b) A guarantees C against the misconduct of B in an office
to which B is appointed by C, and of which the duties are
defined by an Act of the Legislature. By a subsequent Act, the
nature of the office is materially altered. Afterwards, B
misconducts himself. A is discharged by the change from future
liability under his guarantee, though the misconduct of B is in
respect of a duty not affected by the later Act.
(c) C agrees to appoint B as his clerk to sell goods at a
yearly salary, upon A's becoming surety to C for B's duly
accounting for moneys received by him as such clerk. Afterwards,
without A's knowledge or consent, C and B agree that B should be
paid by a commission on the goods sold by him and not by a fixed
salary. A is not liable for subsequent misconduct of B.
(d) A gives to C a continuing guarantee to the
extent of 3,000 rupees for any oil supplied by C to
B on credit. Afterwards B becomes embarrassed, and,
without the knowledge of A, B and C contract that C
shall continue to supply B with oil for ready money,
and that the payments shall be applied to the then
existing debts between B and C. A is not liable on
his guarantee for any goods supplied after this new
(e) C contracts to lend B 5,000 rupees on the 1st March. A
guarantees repayment. C pays the 5,000 rupees to B on the 1st
January. A is discharged from his liability, as the contract has
been varied, inasmuch as C might sue B for the money before the
1st of March.