Critical Appraisal On The Concept Of ‘Surety’ Under The Indian Contract Act, 1872
- IJLLR Journal
- Mar 1
- 2 min read
Anuj Maheshwari, BBA LLB, Symbiosis Law School, Pune
Introduction
The Indian Contract Act, 1872 ("ICA") comprehensively codifies the law of guarantee and establishes the position of the 'Surety' under a contract of guarantee. The surety's liability is not a simple, one-dimensional concept, but rather it is influenced by various factors such as the terms of the contract, the conduct of the parties, and the circumstances of the case. This paper aims to examine the multi-faceted personality of the surety under the ICA and identify the relevant and specific provisions of the Act that deal with the role of the surety in a contract of guarantee. Additionally, it will discuss judicial creativity that supports this multi-dimensional personality of the surety.
Due to the fact that the surety can assume multiple identities, it is possible that each of these personas will have a unique set of obligations at various times. This is plausible due to the fact that the surety can assume multiple personas. To be more specific, the obligations of the surety can vary based on the timing of the agreement and the specific requirements that must be met. For instance, if the principal debtor is unable to fulfil their obligations, the surety may be required to fulfil their contractual obligations and make payments to the creditor in order to fulfil the contract. In addition, the surety is expected to make restitution or compensate for damages directly caused by the principal debtor's failure to pay. Due to this, the surety may be viewed as having multiple responsibilities, and their obligations may vary depending on the timing of the agreement and the specific conditions involved. Consequently, the surety may be considered to have multiple obligations.
