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1The Contract Act, 1872

( ACT NO. IX OF 1872 )

[ 25th April, 1872 ]

Chapter VIII

OF INDEMNITY AND GUARANTEE

Creditor's forbearance to sue does not discharge surety
137. Mere forbearance on the part of the creditor to sue the principal debtor or to enforce any other remedy against him does not, in the absence of any provision in the guarantee to the contrary, discharge the surety.
 
 
 
 
Illustration
 
 
 
 
B owes to C a debt guaranteed by A. The debt becomes payable. C does not sue B for year after the debt has become payable. A is not discharged from his suretyship.
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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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