Principle

Templates•3 documents available

Download Indian guarantee/surety templates: co‑surety contribution, damages on security bond, and suit for price of goods against principal and surety.

Suit For Contribution Between Co SuretiesRTF

Suit For Damages Against Surety Qua His Security BondRTF

Suit For Price Of Goods Against The Principal And The Surety BothRTF

Quick Overview

This Principle directory provides India‑focused templates for suits involving guarantees and sureties: contribution between co‑sureties under Section 146, damages against a surety under a security bond, and recovery of price of goods against the principal and surety. It reflects co‑extensive surety liability (Section 128), allocation rules for co‑sureties (Section 147), preservation of rights despite release of one co‑surety (Section 138), and the surety’s entitlement to creditor’s securities (Section 141), supporting precise, statute‑aligned pleadings for enforcement and contribution.

All templates are provided for reference and should be reviewed by legal professionals before use.

Frequently Asked Questions

Common questions about Principle legal templates

What is a suit for contribution between co‑sureties?

It seeks equal contribution from co‑sureties for the unpaid debt after default, based on Section 146 ICA which mandates equal sharing unless agreed otherwise.

How is contribution apportioned if co‑sureties bound in different sums?

Under Section 147 ICA, co‑sureties pay equally up to their respective limits (penal sums) to the extent their obligations permit.

Is a surety’s liability co‑extensive with the principal debtor?

Yes, Section 128 ICA provides the surety’s liability is co‑extensive with the principal debtor unless the contract states otherwise, allowing the creditor to proceed directly against the surety.

Does releasing one co‑surety discharge the others?

No. Section 138 ICA clarifies that release of one co‑surety does not discharge the others, nor their inter‑se responsibilities.

What are the surety’s rights to the creditor’s securities?

Section 141 ICA entitles the surety to the benefit of securities held by the creditor; loss or parting with such security without consent discharges the surety to that extent.

When can a surety be discharged due to creditor’s conduct?

Material variation, composition or giving time without surety’s consent, or acts impairing surety’s remedy can discharge the surety under Sections 133–139 ICA.

What is a suit for damages against a surety qua his security bond?

It enforces a surety’s obligations under a security/guarantee bond upon breach or forfeiture, claiming damages per bond terms and co‑extensive liability principles.

Can the price of goods be recovered from both principal and surety?

Yes. Consideration moving to the principal debtor suffices for the surety (Section 127), and the surety is co‑extensively liable for the goods’ price unless limited by contract.

How is contribution computed among co‑sureties?

Equally under Section 146, adjusted by caps per Section 147; any payment by one surety beyond their share is recoverable from co‑sureties.

What drafting points matter in surety suits?

Plead the guarantee/bond terms, default, amount due, securities held/lost (Section 141), co‑surety limits (Section 147), and seek contribution or joint and several decrees.