136: Surety not discharged when agreement made with third person to give time to principal
The Contract Act · Federal Acts · Chapter VIII · in_force
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Surety not discharged when agreement made with third person to give time to principal debtor. 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 time to B. A is not discharged.
Related sections
135: Discharge of surety when creditor compounds with, gives time to, or agrees not to sue,137: Creditor’s forbearance to sue does not discharge surety134: Discharge of surety by release or discharge of principal debtor138: Release of one co-surety does not discharge others133: Discharge of surety by variance in terms of contract139: Discharge of surety by creditor’s act or omission impairing surety’s eventual remedy
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