Indian Contract Act Section 128 — Surety’s liability

CHAPTER VIII OF INDEMNITY AND GUARANTEE

Commercial / Corporate

Summary

The liability of the surety is co-extensive with that of the principal debtor, unless it is otherwise provided by the contract. This means that, by default, the surety is responsible for the same amount and in the same manner as the principal debtor. However, the contract itself can set different terms for the surety’s liability, and if it does, those terms will apply instead.

Official Text

The liability of the surety is co- extensive with that of the principal debtor, unless it is otherwise provided by the contract. Illustration