Consideration for guarantee.— Anything done, or any promise made, for the benefit of the principal debtor, may be a sufficient consideration to the surety for giving the guarantee. Illustrations (a) B requests A to sell…
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 A guarantees to B the payment of a bill of…
“Continuing guarantee”.— A guarantee which extends to a series of transactions, is called a “continuing guarantee”. Illustrations (a) A, in consideration that B will employ C in collecting the rent of B’s zamindari, promises B…
Revocation of continuing guarantee.— A continuing guarantee may at any time be revoked by the surety, as to future transactions, by notice to the creditor. Illustrations (a) A, in consideration of B’s discounting, at A’s…
Revocation of continuing guarantee by surety’s death.— The death of the surety operates, in the absence of any contract to the contrary, as a revocation of a continuing guarantee, so far as regards future transactions.…
Liability of two persons, primarily liable, not affected by arrangement between them that one shall be surety on other’s default.— Where two persons contract with a third person to undertake a certain liability, and also…
Discharge of surety by variance in terms of contract.— 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…
Discharge of surety by release or discharge of principal debtor.— The surety is discharged by any contract between the creditor and the principal debtor, by which the principal debtor is released, or by any act…
Discharge of surety when creditor compounds with, gives time to, or agrees not to sue, principal debtor.— A contract between the creditor and the principal debtor, by which the creditor makes a composition with, or…