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In a contract of guarantee, the surety's liability is:
ACo-extensive with that of the principal debtor unless the contract provides otherwise
BAlways greater than that of the principal debtor
CIndependent of the principal debtor
DAlways lesser than the principal debtor
Answer & Solution
Correct answer: A. Co-extensive with that of the principal debtor unless the contract provides otherwise
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_