Indian Contract Act, 1872
132. Liability of two persons,
primarily liable, not affected by arrangement between them that one shall be
surety on other's default
Where two persons contract with a third person to undertake a
certain liability, and also contract with each other that one of them shall be
liable only on the default of the other, the third person not being a party to
such contract the liability of each of such two persons to the third person
under the first contract is not affected by the existence of the second
contract, although such third person may have been aware of its existence.
Illustration
A and B make a joint and several promissory note to C. A makes
it, in fact, as surety for B, and C knows this at the time when the note is
made. The fact that A, to the knowledge of C, made the note as surety for B, is
no answer, to a suit by C against A upon the note.