Forums
Back
CONTRACT OF GUARANTEE
Corporate & Other Laws
Please say the meaning for below sentence. C cancels the mortgage. If mortgage is cancelled means, Why surety is not liable for full 2,00,000
Answers (15)
Miradevi S
Option 1 if c cancel the mortgage means he gave security to B and after that B becomes insolvent. c cancels the mortgage without surety consent so surety is discharged to the extent of the value of furniture
But c makes the mortgage also without surety concerns only know. And again cancel it without surety concerns. Then why surety get discharged to the extent of mortgage market value
Firstly c advances to B 2 lakh right On guarantee of A and c has taken a further security by mirtgage6of b's furniture. At this time whether surety knows or not that is not a problem becoz surety has the benefit of every security which the creditor has against the principal debtor. But after mortgage c himself cancels and loses or without surety consent parts with security surety is discharged
Miradevi S
Firstly c advances to B 2 lakh right On guarantee of A and c has taken a further security by mirtgage6of b's furniture. At this time whether surety knows or not that is not a problem becoz surety has the benefit of every security which the creditor has against the principal debtor. But after mortgage c himself cancels and loses or without surety consent parts with security surety is discharged
Therefore cancels the mortgage means a sale of that mortgage. But this interpretation is it correct?
Miradevi S
Cancel the mortgage means he gave security to B again
Yeah okay now i get it. Thank you sis :) All the best for yours exams.
Miradevi S
You understood right then OK
Yeah now i understood... Dont wry :) And thank you for your wishes
Your Reply