When is surety discharged of his liability?
Pursuant to Section 126 of the Indian Contract Law, 1872 A "warranty contract" or “contract of guarantee” is a contract to fulfill the promise, or discharge the liability, of a third party in the event of default. The person giving the guarantee is called the "guarantee", the person for whose breach the guarantee is given is called the "principal debtor", and the person to whom the guarantee is given is called the "creditor".
There are three contracts and three parties to a warranty contract, the warranty is one of them. The guarantee is also known as a guarantor. The warranty is said to be discharged when your liability arrives to ship. Section 130 to Section 142 of the Indian Contract Law, 1872, deals with the "Discharge of Warranty or Surety" Provision.
Ways to discharge the guarantor's liability
The following are the ways to discharge the warranty liability
1. By revocation:
Pursuant to Section 130 of the Indian Contract Law, a continuous guarantee may be revoked at any time by the guarantee, regarding future transactions, by notification to the creditor.
Illustrations -
(a) A, in consideration of B's discount, at A's request, bills of exchange for C, guarantees to B, for twelve months, the past due payment of all those accounts in the amount of 5,000 rupees. B discounts C's bills to the extent of 2,000 rupees. Then, after three months, A revokes the warranty. This revocation releases A from all liability to B for any subsequent discounts. But A is subject to B for 2,000 rupees, by default of C.
(b) A guarantees B, to the extent of Rs 10,000, that C will pay all the bills that B will pay him. B uses C, C accepts the invoice. A gives notice of revocation. C dishonors the invoice at maturity. A is responsible for its guarantee.
2. By death:
Pursuant to Section 131 of the Indian Contract Law, 1872, the death of the collateral operates, in the absence of any contract to the contrary, as a revocation of a continuing collateral, with respect to future transactions.
3. Due to variation in the terms of the contract:
Section 133 of the Indian Contract Law states that "any variation made without the consent of the guarantee, under the terms of the contract between the principal debtor and the creditor, discharges the guarantee as to the subsequent variation transactions. This means that the Warranty is not responsible for the altered contract.
Illustrations
(a) A becomes collateral for C for B's conduct as manager in C's bank. Subsequently, B and C contract, without A's consent, that B's salary will be increased and that he will be responsible for a quarter of overdraft losses. B allows a customer to overdraw and the bank loses a sum of money. A is released from its bond for the variation made without your consent and is not responsible for compensating this loss.
(b) A warrants C against B's misconduct in an office for which B is appointed by C, and whose duties are defined by an Act of the Legislature. By a later law, the nature of the office is materially modified. Then B misbehaves. A is released by the change of future liability under his guarantee, although B's misconduct is with respect to a duty not affected by the later Law.
(c) C agrees to appoint B as its employee to sell goods at an annual salary, once A makes sure that C accounts for the money received by him as such employee. Then, without the knowledge or consent of A, C and B agree that B must be paid a commission for the goods sold by him and not for a fixed salary. A is not responsible for B's subsequent misconduct.
(d) A grants C a continuous guarantee of up to Rs 3,000 for any oil supplied by C to B on credit. Later, B is ashamed and, without the knowledge of the contract of A, B and C, C will continue to supply oil to B for available money, and that the payments will be applied to the existing debts between B and C. is not responsible for their guarantee for the goods supplied after this new agreement.
(e) C contracts loans for B 5,000 rupees on March 1. A guarantees the refund. C pays Rs 5,000 to B on January 1, A is released from his liability, as the contract has been varied, since C could sue B for the money before March 1.
4. Release of bond for release or discharge of the main debtor (Section 134 of I.C.A., 1872):
The guarantee is released by any contract between the creditor and the main debtor, by which the main debtor is released, or by any act or omission of the creditor, the legal consequence of which is the discharge of the main debtor.
Illustrations
(a) A gives a guarantee to C for the goods to be supplied by C to B. C supplies goods to B, and then B is embarrassed and contracts with his creditors (including C) to assign his property in consideration of his release. of your demands. Here B is released from his debt by the contract with C, and A is withdrawn from his surety.
(b) A hires B to produce an indigo crop on A's land and deliver it to B at a fixed rate, and C guarantees A's compliance with this contract. B diverts a stream of water that is necessary for irrigation of A's land and thus prevents it from raising the indigo. C is no longer responsible for your warranty.
(c) A hires B for a fixed price to build a house for B within a stipulated time. B supplying the necessary wood. C guarantees compliance with the contract by A. B fails to supply the wood. C is discharged from his surety.
5. When the creditor joins, gives time or agrees not to sue the main debtor (Section 135 I.C.A., 1872):
A contract between the creditor and the principal debtor, whereby the creditor makes a composition or promises to give the principal debtor time, or not to sue, releases the collateral, unless the collateral accepts the contract.
6. Discharge of the guarantee by the act of the creditor or omission that damages the eventual remedy of the guarantee:
Pursuant to Section 139 of the Indian Contract Law, if the creditor does any act that is inconsistent with the warranty right, or fails to do any act that his warranty obligation requires him to do, and the eventual Collateral remedy itself against the main debtor is thus affected, the collateral is discharged.
Illustrations
(a) B contracts to build a ship for C for a given sum, to be paid in installments as the work reaches certain stages. A becomes collateral for C for B's due performance of the contract. C, without A's knowledge, prepays B for the last two installments. A is downloaded for this prepaid.
(b) C lends money to B on the security of a joint and several note payable to C by B, and by A as collateral for B, together with a bill of sale for B's furniture, which empowers B C to sell the furniture, and apply the proceeds in the download of the note. Subsequently, C sells the furniture, but due to its misconduct and willful neglect, only a small price is charged. A is exempt from liability in the note.
(c) A places M as B's apprentice and gives B a guarantee of M.'s fidelity. B promises on his part that, at least once a month, he will see M make the cash. B fails to see this as promised, and M misappropriates it. A is not bound to B by its guarantee.
7. Due to loss of security by the creditor (Section 141):
A guarantee is entitled to the benefit of each guarantee that the creditor has against the main debtor at the time the guarantee contract was signed, regardless of whether the guarantee is aware of the existence of said guarantee or not; and if the creditor loses, or without the consent of the existence of said guarantee or not; and if the creditor loses, or without the consent of the guarantee, parts with said guarantee, the guarantee, the guarantee is discharged to the extent of the value of the guarantee.
Illustrations
(a) C, advances to B, his tenant, 2,000 rupees with collateral from A. C also has an additional collateral for 2,000 rupees for a mortgage on B.'s furniture, cancels the mortgage. B becomes insolvent and C demands A for its guarantee. A is released from liability for the amount of the value of the furniture.
(b) C, a creditor, whose advance to B is guaranteed by decree, also receives a guarantee of that advance from A. C then takes B's assets in execution under the decree, and then, without A's knowledge, withdraw the execution. A is downloaded.
(c) A, as collateral for B, establishes a bond jointly with B to C, to secure a loan from C to B. Subsequently, C obtains from B an additional guarantee for the same debt. Subsequently, C forgoes additional security. A is not downloaded.
8. For invalidation of the contract:
Pursuant to Section 142 of the Indian Contract Law, any Warranty obtained by misrepresentation is invalid. Section 142 is executed as follows:
Any guarantee that has been obtained by means of false declarations made by the creditor, or with his knowledge and consent, with respect to an important part of the transaction, is not valid.
9. By Novation:
Novation means the replacement of an existing contract with a new one. Section 62 says that if the parties to a contract agree to replace it with a new contract, or to terminate or alter it, the original contract need not be executed. The guarantee is responsible under the terms of the old contract, but if the previous contract is terminated by novation, the guarantee is also automatically downloaded.
Illustrations
(a) A owes B money under a contract. It is agreed between A, B and C that B will henceforth accept C as their debtor, instead of A. A's old debt to B is ending and a new debt has been incurred from C to B.
(b) A owes B 10,000 rupees. A enters into an agreement with B and grants B a mortgage of his (A's) estate for Rs 5,000 instead of the Rs 10,000 debt. This is a new contract and it extinguishes the old one.
(c) A owes B 1,000 rupees under a contract, B owes C 1,000 rupees, B orders A to credit C with 1,000 rupees on his books, but C does not accept the agreement. B still owes C 1000 rupees, and no new contract has been concluded.
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In Hindi
भारतीय अनुबंध कानून, 1872 ए "वारंटी अनुबंध" या "गारंटी का अनुबंध" की धारा 126 के तहत वादे को पूरा करने, या डिफ़ॉल्ट की स्थिति में दायित्व का निर्वहन करने का एक अनुबंध है। गारंटी देने वाले व्यक्ति को "गारंटी" कहा जाता है, जिस व्यक्ति के लिए गारंटी दी जाती है उसे "प्रमुख देनदार" कहा जाता है, और जिस व्यक्ति को गारंटी दी जाती है उसे "लेनदार" कहा जाता है।
गारंटी के अनुबंध में तीन अनुबंध और तीन पक्ष हैं, ज़मानत उनमें से एक है। ज़मानत को गारंटर के रूप में भी जाना जाता है। जब उसकी देनदारी भेजने की बात आती है, तो ज़मानत को छुट्टी दे दी जाती है। इंडियन कॉन्ट्रैक्ट एक्ट की धारा 130 से धारा 142, 1872 में "डिस्चार्ज ऑफ प्रोबिटी" का प्रावधान है।
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In Bengali
1872 সালের ভারতীয় চুক্তি আইনের ধারা 126 অনুসারে একটি "ওয়ারেন্টি চুক্তি" বা "গ্যারান্টির চুক্তি" হ'ল একটি চুক্তি যা তৃতীয় পক্ষের তৃতীয় পক্ষের প্রতিশ্রুতি পূরণ, বা দায়বদ্ধতা সঞ্চার করার একটি চুক্তি default গ্যারান্টি প্রদানকারী ব্যক্তিকে "গ্যারান্টি" বলা হয়, যার লঙ্ঘনের জন্য গ্যারান্টি দেওয়া হয় তাকে "প্রধান দেনাদার" বলা হয়, এবং যার সাথে গ্যারান্টি দেওয়া হয় তাকে "পাওনাদার" বলা হয়।
গ্যারান্টির চুক্তিতে তিনটি চুক্তি এবং তিনটি পক্ষ রয়েছে, জামিনতাই তাদের মধ্যে একটি। জামিনটি গ্যারান্টর হিসাবেও পরিচিত। জামিনত যখন তার দায় পাঠাতে আসে তখন তাকে ছাড়িয়ে দেওয়া হবে বলে জানা গেছে। ভারতীয় চুক্তি আইন, ১৮7২ এর ১৩০ থেকে ধারা ১৪২ এর অধীনে "জামিনত ছাড়াই" এর বিধান রয়েছে।
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