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1The Contract Act, 1872

( ACT NO. IX OF 1872 )

[ 25th April, 1872 ]

Chapter VIII

OF INDEMNITY AND GUARANTEE

Surety's liability
128. 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 exchange by C, the acceptor. The bill is dishonoured by C. A is liable not only for the amount of the bill but also for any interest and charges which may have become due on it.
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    Throughout this Act, except otherwise provided, the words "Bangladesh", "Taka" and "Penal Code" were substituted, for the words "Pakistan" or "East Pakistan", "Rupees" or "Rs." and "Pakistan Penal Code" respectively by section 3 and 2nd Schedule of the Bangladesh Laws (Revision And Declaration) Act, 1973 (Act No. VIII of 1973).
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