Indian Contract Act Section 139 — Discharge of surety by creditor’s act or omission impairing surety’s eventual remedy

CHAPTER VIII OF INDEMNITY AND GUARANTEE

Commercial / Corporate

Summary

If the creditor does something that goes against the surety's rights, or fails to do something that the creditor was duty-bound to do for the surety, and this action or inaction makes the surety's own eventual right to recover from the principal debtor weaker or less effective, then the surety is released from their obligation.

Official Text

If the creditor does any act which is inconsistent with the rights of the surety, or omits to do any act which his duty to the surety requires him to do, and the eventual remedy of the surety himself against the principal debtor is thereby impaired, the surety is discharged. Illustrations