Mera Samvidhaan All of Indian Contract Act, 1872

Chapter VIII · Of Indemnity and Guarantee

137Creditor’s forbearance to sue does not discharge surety.

Section 137 · Chapter VIII · page 36 of the Act

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.

Section 137 of The Indian Contract Act, 1872 is reproduced in full above, as printed by India Code, with its footnotes and amendment markers. Read the whole Act, or browse every Act on Mera Samvidhaan.