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United Kingdom
suretyshipguarantee
Bank of India v Patel
[1982] 1 Lloyd's Rep 506
Key Principle
A guarantor (surety) is not discharged merely by the creditor's negligence or want of care in conducting the principal debtor's business or the underlying transactions; the surety is discharged only where the creditor is guilty of conduct, such as bad faith or a breach of a duty actually owed to the surety, that prejudices the surety.
Area of Law
General
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