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  • Mr. Sham guarantees Prutha’s lease agreement.But Prutha defaults on rent payment and Mr. Sham pays the re

Mr. Sham guarantees Prutha’s lease agreement.But Prutha defaults on rent payment and Mr. Sham pays the rent to the landlord as surety.Is Mr. Sham discharged from the guarantee.

Option: 1

Depends on agreement.


Option: 2

Mr. Sham is not discharged from the guarantee.


Option: 3

Mr. Sham is discharged from the guarantee.


Option: 4

It depends on Mr. Sham’s will.


Answers (1)

A surety is discharged from their obligations once they make the payment or perform the obligation on behalf of the principal debtor.In this case Mr. Sham paid the rent as a surety so he is discharged from guarantee. Hence correct option is c.

Posted by

Ramraj Saini

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