Home › CA Inter › corporatelaws › Surety Co-extensive Liability › In a contract of guarantee, the surety's liabili…
In a contract of guarantee, the surety's liability is:
Answer & Solution
Correct answer: A.
1. Section 128 — surety's liability is co-extensive with the principal debtor, unless otherwise stipulated.
2. If the principal contract is unenforceable, so is the guarantee.
3. Hence (B).
_Source: ICAI BoS CA Inter Paper 2 — Indian Contract Act 1872_