1The Contract Act, 1872

( ACT NO. IX OF 1872 )

124. "Contract of indemnity" defined

125. Rights of indemnity- holder when sued

126. "Contract of guarantee", "surety", "principal debtor" and "creditor"

127. Consideration for guarantee

128. Surety's liability

129. "Continuing guarantee"

130. Revocation of continuing guarantee

131. Revocation of continuing guarantee by surety's death

132. Liability of two persons primarily liable, not affected by arrangement between them that one shall be surety on other’s default

133. Discharge of surety by variance in terms of contract

134. Discharge of surety by release or discharge of principal debtor

135. Discharge of surety when creditor compounds with, gives time to, or agrees not to sue, principal debtor

136. Surety not discharged when agreement made with third person to give time to principal debtor

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

138. Release of one co-surety does not discharge others

139. Discharge of surety by creditor's act or omission impairing surety's eventual remedy

140. Rights of surety on payment or performance

141. Surety's right to benefit of creditor's securities

142. Guarantee obtained by misrepresentation invalid

143. Guarantee obtained by concealment invalid

144. Guarantee on contract that creditor shall not act on it until co-surety joins

145. Implied promise to indemnify surety

146. Co-sureties liable to contribute equally

147. Liability of co-sureties bound in different sums

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Ministry of Law, Justice and Parliamentary Affairs