Indian Contract Act Section 136 — Surety not discharged when agreement made with third person to give time to principal debtor

CHAPTER VIII OF INDEMNITY AND GUARANTEE

Commercial / Corporate

Summary

Where a contract to give time to the principal debtor is made by the creditor with a third person, and not with the principal debtor, the surety is not discharged. This means that if the creditor agrees with someone else—not the principal debtor—to extend the time for repayment, the surety remains liable and is not released from their obligation.

Official Text

Where a contract to give time to the principal debtor is made by the creditor with a third person, and not with the principal debtor, the surety is not discharged. Illustration