Question

'B' owes 'C' a debt guaranteed by 'X'. 'C' does not sue 'B' for a year after the debt has become payable. In the meantime 'B' becomes insolvent. Which of the following is correct according to Indian Contract Act, 1872?

• A. 'X' is discharged from the guarantee
• B. 'X' is not discharge from the guarantee
• C. Mere forbearance on the part of 'C' to sue discharge 'X'
• D. None of the above

Answer 1

Answer: (B)

'X' is not discharge from the guarantee

Answer 2

The correct option is (B): 'X' is not discharge from the guarantee.