Indian Contract Act,1872

Act No : 9

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Section : Liability of two persons, primarily liable, not affected byarrangement between them that one shall be surety on other's default

132. Liability of two persons, primarily liable, not affected byarrangement between them that one shall be surety on other's default.-Where two persons contract with a third person to undertake a certainliability, and also contract with each other that one of them shall beliable only on the default of the other, the third person not being aparty to such contract, the liability of each of such two persons tothe third person under the first contract is not affected by theexistence of the second contract, although such third person may havebeen aware of its existence. Illustration A and B make a joint and several promissory note to C. A makesit, in fact, as surety for B, and C knows this at the time when thenote is made. The fact that A, to the knowledge of C, made the noteas surety for B, is no answer to a suit by C against A upon the note.

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