Section 139 of ICA : Section 139: Discharge Of Surety Of Creditor'S Act Or Omission Impairing Surety'S Eventual Remedy

Explanation using Example

Imagine you are a small business owner who has provided a personal guarantee to a supplier for products delivered to your business on credit. The supplier agrees to a payment plan with your business, where payments are due monthly after delivery. However, without informing you, the supplier changes the payment terms and demands early payment from your business, which then defaults because it cannot meet the unexpected demand. As the surety, you would be discharged from your obligation to the supplier because they acted in a way that was inconsistent with your rights, by changing the payment terms without your knowledge, thus impairing your position.