Monday, June 09, 2008

Contract Act Practicle Problems_71

A contracts with B for a fixed price to construct a house for B within a stipulated time. B would supply the necessary material to be used in the construction/ C guarantee A’s performance of the contract. B does not supply the material as per the agreement. IS C discharged from his liability?

The surely is discharged by any act or omission of the creditor, the legal consequence of which is the discharge of the principal debtor. Failure to supply the necessary material by B (i.e., the creditor) amounts to an omission on the part of the creditor resulting in discharge of A (i.e., the principal debtor), and consequently, C (i.e., the surety) is discharged.

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