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Under Section 139, if the creditor does an act inconsistent with the surety's rights, or omits a duty owed to the surety, thereby impairing the surety's eventual remedy:
AThe surety is discharged
BThe guarantee becomes continuing
CThe surety's liability increases
DOnly the principal debtor is discharged
Answer & Solution
Correct answer: A. The surety is discharged
Section 139 discharges the surety where the creditor's act or omission impairs the surety's eventual remedy against the principal debtor, e.g. negligently losing the secured stock.
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