Indian Contract Act Section 144 — Guarantee on contract that creditor shall not act on it until co-surety joins

CHAPTER VIII OF INDEMNITY AND GUARANTEE

Commercial / Corporate

Summary

A person gives a guarantee on the condition that the creditor will not act on it until another person also joins as a co-surety. If that other person never joins, the guarantee is not valid.

Official Text

Where a person gives a guarantee upon a contract that the creditor shall not act upon it until another person has joined in it as co-surety, the guarantee is not valid if that other person does not join.