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Under Section 137, mere forbearance by the creditor to sue the principal debtor:
AMakes the surety primarily liable
BDoes not, by itself, discharge the surety
CDischarges the surety
DExtends the guarantee
Answer & Solution
Correct answer: B. Does not, by itself, discharge the surety
Section 137 provides that mere forbearance to sue or to enforce a remedy does not discharge the surety, absent a contrary provision in the guarantee.
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