Section 258 The Indian Contract Act, 1872
Section 258 – The Indian Contract Act, 1872
📜 Title: "Effect of discharge of one joint debtor"
Text of Section 258:
"Where two or more persons are jointly liable in respect of the same debt or duty, a release or discharge of any one from the liability releases all."
🔍 Explanation of Section 258:
Section 258 deals with the liability of joint debtors and what happens if one debtor is discharged or released.
🧠 Key Points:
Joint Liability:
When two or more persons owe the same debt or duty jointly, each is liable for the entire debt.
Release of One Debtor:
If the creditor releases or discharges one joint debtor,
Then all other joint debtors are also released from the obligation.
⚖️ Illustration:
A, B, and C owe ₹50,000 jointly to D.
If D releases A from the debt, then B and C are also freed from the debt.
D cannot later demand the debt from B and C.
🧑⚖️ Importance:
This section prevents the creditor from selectively releasing some debtors but holding others liable for the whole debt.
It emphasizes the joint and indivisible nature of such liabilities.
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