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Contract of Guarantee

Corporate & Other Laws

C contracts with B to build a ship the payment of which is to be made in instalments at various stages of completion. A guarantee's C's performance. B prepays the last two instalments. A is discharged of his liability. A is discharged by this prepayment. Can someone explain this example. How it discharges the surety?

CYNOPHILE S

CA Inter

★ 925

07-Jun-23 16:08

153

Answers (2)

Boz... Surety is discharged from his liability... In the primary contract it is said that payment is made in various installments but actually payment made in prepays Therefore surety is discharged... For future transactions