Skip to main content

Surety's liability

SURETY’S Liability by Kalyani

Surety’s liability is defined under section 128 of Indian Contract Act. Section 128 of Indian Contract Act says that surety’s liability is co-extensive with that of principal debtor when not stated in contract.

Illustration- A takes guarantees B that C will pay for the goods given by B in a specific period of time. But C fails to pay the bill and so A becomes liable to pay the bill of B . and A is also liable to pay any interest if was given in the contract.

Extent of surety’s liability: surety has a right to put limitations of his payment if principal debtor  fails to perform his duty while entering into contract. Suppose surety can put limit of 10,000 Rs and not above it during contract.

NOTE: In absence of such contract, his liability is co-extensive with that of the principal debtor.

Illustration:  in Hobson v Bass (1871) the surety expressly declared that “my liability under this guarantee shall not at any time exceed the sum of £250“. 

 

Labels:

Comments

Post a Comment

Popular posts from this blog

Understanding Counterclaims: A Comprehensive Guide

  Understanding Counterclaims: A Comprehensive Guide In legal proceedings, a counterclaim is a vital tool that allows defendants to assert their own claims against the plaintiff. This strategic maneuver not only defends against the plaintiff's allegations but also enables defendants to seek their own relief. In this comprehensive guide, we delve into the intricacies of counterclaims, exploring their purpose, procedures, and implications in various legal contexts. Introduction to Counterclaims Definition A counterclaim is a legal claim brought by a defendant against the plaintiff in response to the plaintiff's initial complaint. It serves as a means for defendants to assert their own rights, defenses, or causes of action arising from the same transaction or occurrence as the plaintiff's claim. Purpose The primary purpose of a counterclaim is to allow defendants to present their side of the story and seek appropriate remedies or relief. By filing a counterclaim, defendants ca...
7 comments
Read more

Title: Legal Recourse Against Electronic Harassment, Including V2K: Understanding Options and Rights

  Title: Legal Recourse Against Electronic Harassment, Including V2K: Understanding Options and Rights Electronic harassment, including technologies like Voice-to-Skull (V2K) and other forms of electronic harassment, can inflict significant psychological and emotional harm on individuals. Victims of such harassment often wonder if there are legal avenues available to seek redress and hold perpetrators accountable for their actions. While navigating legal action in cases of electronic harassment can be complex, understanding available options and rights is crucial. Here's a detailed exploration of the possibility of taking legal action against individuals engaged in electronic harassment: Understanding Electronic Harassment (0-7 days) : Electronic harassment encompasses a range of behaviors involving the use of electronic devices or technologies to inflict harm, including V2K, electronic surveillance, cyberstalking, and cyberbullying. V2K, in particular, refers to the transmission o...
10 comments
Read more

Title: Understanding "Your Complaint has been Disposed under a Closed Complaint"

  Title: Understanding "Your Complaint has been Disposed under a Closed Complaint" When you receive a notification stating "Your complaint has been disposed under a closed complaint," it signifies the closure of the complaint you filed with the respective entity or organization. This phrase is commonly used by customer service departments, grievance redressal cells, regulatory bodies, or complaint management systems to inform complainants about the resolution status of their complaint. Here's a detailed explanation of what it means and its implications: Disposition of Complaint (0-7 days) : "Disposed" indicates that the complaint has been addressed, reviewed, and resolved by the concerned authority or entity. The closure of the complaint signifies that the responsible party has taken appropriate action to address the issues raised in the complaint. Closure Status (0-7 days) : "Closed complaint" indicates that the complaint resolution process ...
11 comments
Read more