CAF-4 · Chapter 11 · Question 5 of 10
The liability of the surety is 'co-extensive' with that of the principal debtor. This means:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) The surety's liability is the same as the principal debtor's liability.
Explanation
Section 128 states that the liability of the surety is co-extensive with that of the principal debtor unless the contract says otherwise.
More Indemnity and guarantee MCQs
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