Section 128 of ICA : Section 128: Surety'S Liability

Explanation using Example

Under Section 128 of The Indian Contract Act, a surety's obligation mirrors that of the original debtor. This means if the debtor fails to fulfill the terms of the contract, the surety becomes equally responsible for the debt.

Example:

• Raj signs a contract to act as a surety for Anita's loan of ₹50,000 from a bank. The contract does not specify any limitations on Raj's liability. If Anita fails to repay the loan, Raj will be responsible for repaying the entire amount of ₹50,000 plus any applicable interest and late fees to the bank, just as Anita would have been.