Sticky Situation Guaranteed Forbearance and Limitations
Volume II – Issue II, 2020
The Indian Contract Act, 1872 has contained in it the very important concept of a contract of guarantee and in these provisions lies section 134 and 137 as well which discusses the possibility of the creditor to forbear enforcement of his right against a principal debtor after he defaults. This forbearance can be thought as consideration for the contract but the duration of this forbearance may be viewed with some uncertainty. This paper aims to deal with the same issue with analysing the interplay of the Indian Contract Act and the Limitations Act, 1963 while discussing the result of forbearance past the time period stipulated by the statute of limitations; which has not been previously dealt with and therefore can lead to a enhanced understanding of the concept of forbearance.
Keywords: Indian Contract Act, Contract of Guarantee, Forbearance, Limitations Act.