Section 172 The Indian Contract Act, 1872

Section 172 – The Indian Contract Act, 1872
📘 Title: Effect of Release or Discharge of one Joint Promisor

🔹 Bare Act Language:

"Where two or more persons are jointly bound to perform an obligation, and one of them is released or discharged from it, the obligation remains binding on the others."

🔍 Explanation:

This section deals with joint obligations — when two or more persons are jointly liable to perform a contract or duty.

If the creditor releases or discharges one joint obligor, this does not release the others. The remaining persons are still bound to perform the entire obligation.

Example:

A and B are jointly liable to pay ₹50,000 to C.

C releases A from the obligation.

B is still liable to pay the entire ₹50,000 to C.

📌 Key Points:

Applies to joint obligations (not joint and several).

Release of one joint obligor does not discharge others.

The creditor can still enforce the whole contract against the remaining obligors.

 

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