Law · Indian Contract Act, 1872

Statement 1: Under a contract of guarantee, the surety has the right of subrogation, which means that upon payment of the guaranteed debt or performance of all that he is liable for, the surety is invested with all the rights which the creditor had against the principal debtor. This protection is provided by Section 141 of the Indian Contract Act 1872. Statement 2: The principal debtor is under an implied obligation to indemnify the surety for all sums rightfully paid under the guarantee, as stipulated in Section 145 of the Act. However, the surety cannot recover from the principal debtor any sums that were paid 'wrongfully'. Statement 3: Any variance in the terms of the contract between the principal debtor and the creditor, made without the surety's consent, discharges the surety as to transactions subsequent to the variance according to Section 133. Which of the following statements summarizes the overall legal protection offered to a surety under the Indian Contract Act 1872?