VoxJuris
Home › Acts › Indian Contract Act, 1872 › Chapter VI › Section 133

Indian Contract Act, 1872 · Chapter VI: Of the Consequences of Breach of Contract · Of indemnity and guarantee

Section 133: Discharge of surety by variance in terms of contract

In plain words

Any change in the terms of the contract between the principal debtor and the creditor, made without the surety's consent, discharges the surety for transactions after the change.

Example: A guarantees B's honest accounting as C's clerk on a fixed salary. Without A's consent, C and B switch to pay by commission. A is not liable for B's later misconduct.

A simplified explanation, prepared with AI assistance from the official text below and checked automatically against it for numbers and cross-references. The official text is the law and prevails over this summary. Not legal advice.

Read the in-depth explanation, with key Supreme Court rulings ↓

Official text

Any variance, made without the suretys consent, in the terms of the contract between the principal [debtor] and the creditor, discharges the surety as to transactions subsequent to the variance.

Illustrations

(a) A becomes surety to C for B's conduct as a manager in C's bank. Afterwards, B and C contract, without A's consent, that B's salary shall be raised, and that he shall become liable for one-fourth of the losses on overdrafts. B allows a customer to overdraw, and the bank loses a sum of money. A is discharged from his suretyship by the variance made without his consent, and is not liable to make good this loss.

(b) A guarantees C against the misconduct of B in an office to which B is appointed by C, and of which the duties are defined by an Act of the Legislature. By a subsequent Act, the nature of the office is materially altered. Afterwards, B misconducts himself. A is discharged by the change from future liability under his guarantee, though the misconduct of B is in respect of a duty not affected by the later Act.

(c) C agrees to appoint B as his clerk to sell goods at a yearly salary, upon A's becoming surety to C for B's duly accounting for moneys received by him as such clerk. Afterwards, without As knowledge or consent, C and B agree that B should be paid by a commission on the goods sold by him and not by a fixed salary. A is not liable for subsequent misconduct of B.

(d) A gives to C a continuing guarantee to the extent of 3,000 rupees for any oil supplied by C to B on credit. Afterwards B becomes embarrassed, and, without the knowledge of A, B and C contract that C shall continue to supply B with oil for ready money, and that the payments shall be applied to the then, existing debts between B and C. A is not liable on his guarantee for any goods supplied after: this new arrangement.

(e) C contracts to lend B 5,000 rupees on the 1st March. A guarantees repayment. C pays the 5,000 rupees to B on the 1st January. A is discharged from his liability, as the contract has been varied, inasmuch as C might sue B for the money before the 1st of March.

Source: India Code (indiacode.gov.in), the consolidated text published by the Legislative Department, Government of India. Text as updated on India Code on 15 October 2026. Words in square brackets [ ] were inserted or substituted by later amending Acts, and *** marks words omitted by an amendment. The amendment footnotes are not reproduced here. Official text on India Code.

Understanding this section

Section 133 discharges the surety for later transactions if the creditor and principal debtor vary the terms of their contract without the surety's consent. The surety agreed to guarantee a particular bargain; he is not bound by a different one.

What counts as variance

Any material change in the terms between creditor and principal debtor, such as changing the payment terms, the mode of remuneration, the nature of the duties, or advancing money earlier than agreed. The change need not be prejudicial; lack of the surety's consent is enough.

Effect

The surety is discharged as to transactions after the variance. Liability for earlier transactions remains.

Other modes of discharge

  • Release or discharge of the principal debtor (section 134).
  • Composition, giving time, or agreeing not to sue the principal debtor without the surety's consent (section 135).
  • Creditor's act or omission impairing the surety's eventual remedy (section 139).
  • Loss or release of securities held by the creditor (section 141).

Common mistakes

  • Requiring prejudice to the surety; non-consent to a material variance is enough.

Read with: Section 134 Indian Contract Act, 1872, Section 135 Indian Contract Act, 1872, Section 139 Indian Contract Act, 1872

Prepared with AI assistance as a study aid. Every ruling listed was checked against the Supreme Court's own judgments on this site, and quoted words appear in those judgments; linked names open the full judgment. Read the judgments themselves before relying on them. Not legal advice.

Supreme Court judgments citing the section 133