137. Creditor’s forbearance to sue does not discharge surety. Mere forbearance on the part of the creditor to sue the principal debtor or to enforce any other remedy against him, dies not, in the absence of any provision in the guarantee to the contrary, discharge the surety. Illustration- B owesKEEP READING
138. Release of one co-surety does not discharge other. Where there are co-sureties, a release by the creditor of one of them does not discharge the others neither does set free the surety so released from his responsibility to the other sureties. Read Contract Act in a systematic way. ReadKEEP READING
139. Discharge of surety by creditor’s act or omission impairing surety’s eventual remedy. If the creditor does any act which is inconsistent with the right of the surety, or omits to do any act which his duty to the surety requires him to do, and the eventual remedy of theKEEP READING
140. Rights of surety on payment or performance. Where a guaranteed debt has become due, or default of the principal debtor to perform a guaranteed duty has taken place, the surety upon payment or performance of all that he is liable for, is invested with all the rights which theKEEP READING
141. Surety’s right to benefit of creditor’s securities. A surety is entitled to the benefit of every security which the creditor has against the principal debtor at the time when the contract of suretyship entered into, whether the surety knows of the existence of such security or not; and ifKEEP READING
142. Guarantee obtained by misrepresentation, invalid. Any guarantee which has been obtained by means of misrepresentation made by the creditor, or with his knowledge and assent, concerning a material part of the transaction, is invalid. Read Contract Act in a systematic way. Read Contract Act each section wise. Download beautiful,KEEP READING
143. Guarantee obtained by concealment, invalid. Any guarantee which the creditor has obtained by means of keeping silence as to material circumstances, is invalid. Illustrations- (a) A engages B as clerk to collect money for him. B fails to account for some of his receipts and A in consequence callKEEP READING
144. Guarantee on contract that creditor shall not act on it until co-surety joins. Where a person gives a guarantee upon a contract that the creditor shall not act upon it until another person has jointed in it as co-surety, the guarantee is not valid that other person does notKEEP READING
145. Implied promise to indemnify surety. In every contract of guarantee there is an implied promise by the principal debtor to indemnify the surety, and the surety is entitled to recover from the principal debtor whatever sum he has rightfully paid under the guarantee, but no sums which he has paidKEEP READING
146. Co-sureties liable to contribute equally. Where two or more persons are co-sureties for the same debt or duty, either jointly or severally, and whether under the same or different contract, and whether with or without the knowledge of each other the co-sureties, in the absence of any contract toKEEP READING
147. Liability of co-sureties bound in different sums. Co-sureties who are bound in different sums are liable to pay equally as far as the limits of their respective obligations permit. Illustrations- (a) A, B and C, as sureties for D, enter into three several bonds each in a different penaltiesKEEP READING
148. “Bailment”, “bailor” and “bailee” defined. A “bailment” is the delivery of goods by one person to another for some purpose, upon a contract that they shall, when the purpose is accomplished, be returned or otherwise disposed of according to the direction of the person delivering them. The person deliveringKEEP READING
149. Delivery to bailee how made. The delivery to be bailee may be made by doing anything which has the effect of putting the goods in the possession of the intended bailee or of any person authorised to hold them on his behalf. Read Contract Act in a systematic way.KEEP READING
150. Bailor’s duty to disclose faults in goods bailed. The bailor is bound to disclose to the bailee faults in the goods bailed, of which the bailor is aware, and which materially interfere with the use of them, or expose the bailee to extraordinary risk; and if he does notKEEP READING
151. Care to be taken by bailee. In all cases of bailment the bailee is bound to take as much care of the goods bailed to him as a man of ordinary prudence would, under similar circumstances, take of his own goods of the same bulk, quantity and value asKEEP READING
152. Bailee when not liable for loss, etc, of thing bailed. The bailee, in the absence of any special contract, is not responsible for the loss, destruction or deterioration of the thing bailed, if he has taken the amount of care of it described in section 151. Read Contract ActKEEP READING
