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In this question M cannot sue P as per ICAI shouldnt answer be M can sue P?

Priyanka Udeshi

CA Final

★ 14K+

09-Feb-21 15:41

348

Answers (5)

No M cannot sue P ( it was Without concern of P) also M reduced the rate of interest. Because of this P is discharged.

saravana pandian

CA Inter

★ 5

09-Feb-21 16:50

saravana pandian

No M cannot sue P ( it was Without concern of P) also M reduced the rate of interest. Because of this P is discharged.

But aren't the variation in terms beneficial for P?

Thread Starter

Priyanka Udeshi

CA Final

★ 14K+

09-Feb-21 17:17

Yes . But Without asking the permission (concern) of P,. M changed the rate of interest from 10 present to 6 present. As per contract act P is discharged.

saravana pandian

CA Inter

★ 5

09-Feb-21 18:12

Good question and discussion above. It's a material / substantial variation, even when it seems beneficial because insolvency could have been avoided through n ways and hence, consulting P was important. So, M can't sue P. Relevant provision is: Variation which is not substantial or material or which is beneficial to the surety will not discharge him of his liability. But here, it is material / substantial. Happy studying!