Indian Contract Act Section 133 — Discharge of surety by variance in terms of contract

CHAPTER VIII OF INDEMNITY AND GUARANTEE

Commercial / Corporate

Summary

Any change made to the terms of the contract between the principal debtor and the creditor, if done without the surety’s consent, releases the surety from liability for transactions that happen after the change is made. This means the surety is no longer responsible for anything that occurs following the alteration, but the section does not address liability for transactions before the change.

Official Text

Any variance, made without the surety’s consent, in the terms of the contract between the principal 1[debtor] and the creditor, discharges the surety as to transactions subsequent to the variance. Illustrations