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Under Section 135, a contract by which the creditor compounds with, gives time to, or promises not to sue the principal debtor:
AMakes the guarantee continuing
BHas no effect on the surety
CDischarges the surety, unless the surety assents to it
DDischarges the principal debtor only
Answer & Solution
Correct answer: C. Discharges the surety, unless the surety assents to it
Section 135 discharges the surety where the creditor composes with, grants time to, or agrees not to sue the principal debtor without the surety's assent.
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