The law treats a surety as a "favoured debtor" because they undertake liability for the benefit of others without receiving a direct profit. Consequently, the courts strictly interpret the contract of guarantee. Any unauthorized variance in the terms (Section 133), release of the principal debtor (Section 134), or loss of security by the creditor (Section 141) results in the immediate discharge of the surety. The creditor must act with the utmost good faith; any act prejudicial to the surety's rights grants the latter legal protection.
Previous years solved LLB / BA-LLB question papers. Must have handbook for all the Law students of Chaudhary Charan Singh University
No comments:
Post a Comment