Guarantee

Question 1

Bank of Bihar v. Damodar Prasad

Answer 1

The creditor may need not to exhaust his remedies against the debtor before suing the surety

Question 2

SBI v. Prem & Co Saw mill

Answer 2

Sufficient consideration for surety - State Bank gave notice to the debtor-defendant and also threatened legal action against her, but her husband agreed to become surety and undertook to pay the liability and also executed a promissory note in favor of the State Bank and the Bank refrained from threatened action. It was held that such patience and acceptance on the bank’s part constituted good consideration for the surety.

Question 3

Periyamianna Marakkayar v. Banians & Co

Answer 3

There must be three parties