Contract Act, 1872 Section 136 | Surety not discharged when agreement made with third person to give time to principal debtor.

Contract Act, 1872 Section 136

Surety not discharged when agreement made with third person to give time to principal debtor.

Where a contract to give time to the principal debtor is made by the creditor with a third person, and not with the principal debtor, the surety is not discharged.

Illustration:

 C, the holder of an overdue bill of exchange drawn by A as surety for B, and accepted by B, contracts with M to give time to B. A is not discharged.

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