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Section 136, Contract Act 1872: Surety Not Discharged When Agreement...

Section 136 under the Chapter VIII (Of indemnity and guarantee) of the Contract Act, 1872 of India - 'Surety not discharged when agreement made with third person to give time to principal debtor', is reproduced hereunder:—

“Where a contract to give time to the principal debtor is made by the creditor with a third person, and not with the principal debtor, the surety is not discharged.

Illustration

C, the holder of an overdue bill of exchange drawn by A as surety for B, and accepted by B, contracts with M to give to B. A is not discharged.”

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