Chapter- 4 Contracts relating to Guarantee, Indemnity and Subrogation

Section 20 : Guarantee related viable contract

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The surety may cause to declare void the contract relating to the guarantee in the following circumstances:

(a) In case the creditors him/herself, or any other person with his/her consent, has obtained the guarantee by supplying wrong or misleading information or notice to the surety in connection with the matter connected with the transaction in respect to which the guarantee has been provided;

(b) In case the subject matter, property (cash or kind) involved, or facts relating to the guarantee have been concealed or not mentioned:

(c) In case the contract has been concluded with a provision for a third person as a surety, and the third person has not given his/her consent to provide the guarantee.

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Section 20 : Guarantee related viable contract

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