Multiple choice

In which of the following circumstance a surety stands discharged?

  1. By release or discharge of the principal debtor

  2. By variance in the terms of contract

  3. (1) and (2) both

  4. None of these

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Under Section 133 and 134 of Indian Contract Act, 1872, a surety stands discharged both when the principal debtor is released/discharged by the creditor, and when there's a material variance in contract terms without surety's consent.