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Section 81

Surety’s liability

of Contracts Act 1950

ActIn forceProvision 68 of 108
Section 81

The liability of the surety is co-extensive with that of the principal debtor, unless it is otherwise provided by the contract.

A guarantees to B the payment of a bill of exchange by C, the acceptor. The bill is dishonoured by C. A is liable, not only for the amount of the bill, but also for any interest and charges which may have become due on it.

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