Indian Contract Act : Surety not discharged when agreement made with third personto give time to principal

Indian Contract Act,1872

Act No : 9

Section : Surety not discharged when agreement made with third personto give time to principal debtor

136. Surety not discharged when agreement made with third personto give time to principal debtor. Where a contract to give time to theprincipal debtor is made by the creditor with a third person, and notwith the principal debtor, the surety is not discharged. Illustration C, the holder of an overdue bill of exchange drawn by A as suretyfor B, and accepted by B, contracts with M to give time to B. A is notdischarged.