Question:

'B' owes 'C' a debt guaranteed by 'X'. 'C' does not sue 'B' for a year after the debt has become payable. In the meantime 'B' becomes insolvent. Which of the following is correct according to Indian Contract Act, 1872?

Updated On: Aug 5, 2024

'X' is discharged from the guarantee
'X' is not discharge from the guarantee
Mere forbearance on the part of 'C' to sue discharge 'X'
None of the above

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The Correct Option is B

Solution and Explanation

The correct option is (B): 'X' is not discharge from the guarantee.

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