Section 82 The Indian Contract Act, 1872
📜 Section 82 – Indian Contract Act, 1872
Title: "Surety not discharged when agreement made with third person to give time to principal debtor"
Text of Section 82:
“Where a contract to give time to the principal debtor is made by the creditor with a third person, and not with the principal debtor, the surety is not discharged.”
✅ Meaning & Explanation:
This section deals with contracts of guarantee and specifically addresses the liability of a surety (guarantor).
If the creditor gives more time to the debtor, normally, the surety could be discharged under Section 135.
However, if the creditor gives time to the debtor through an agreement with a third party (not the debtor), then the surety remains liable.
➡️ The surety is not discharged because the principal debtor is not a party to the agreement to extend time.
📌 Example:
A (creditor) lends money to B (principal debtor).
C is the surety.
A makes an agreement with D (a third party) to give B more time to repay.
➡️ C is still liable as surety because the agreement wasn’t with B directly.
🧑⚖️ Legal Insight:
This provision protects creditors from losing surety protection merely because they made an informal or indirect arrangement.
It also ensures that only direct dealings with the debtor (that affect the original terms) can release the surety.
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