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Questions and Answers
What are the 3 parties involved in a Contract of Guarantee?
What are the 3 parties involved in a Contract of Guarantee?
- Creditor, Lender, Debtor
- Surety, Principal, Creditor (correct)
- Surety, Debtor, Bank
- Principal, Surety, Agent
When does the role of the surety in a Contract of Guarantee typically arise?
When does the role of the surety in a Contract of Guarantee typically arise?
- At the beginning of the contract
- Only if the debtor is bankrupt
- When there is a default by the principal debtor (correct)
- When the creditor requests it
According to Section 127, what may be considered as a sufficient consideration for the surety to give the guarantee?
According to Section 127, what may be considered as a sufficient consideration for the surety to give the guarantee?
- Anything done for the benefit of the principal debtor (correct)
- Sharing a personal relationship with the debtor
- Promising to pay double the debt amount
- A high monetary compensation
What does Section 128 say about the liability of the surety in a Contract of Guarantee?
What does Section 128 say about the liability of the surety in a Contract of Guarantee?
What type of consent should be obtained from the surety in a Contract of Guarantee?
What type of consent should be obtained from the surety in a Contract of Guarantee?
What type of guarantee involves a series of transactions?
What type of guarantee involves a series of transactions?
In the case of State Bank of India v. G.J Herman, who has the authority to decide from whom the debt should be recovered?
In the case of State Bank of India v. G.J Herman, who has the authority to decide from whom the debt should be recovered?
Under what circumstances can a surety revoke their contract of guarantee?
Under what circumstances can a surety revoke their contract of guarantee?
What action can discharge a surety's liability under Section 141 of the Indian Contract Act, 1872?
What action can discharge a surety's liability under Section 141 of the Indian Contract Act, 1872?
In which scenario is revocation of a guarantee not possible according to Section 131 of the Indian Contract Act, 1872?
In which scenario is revocation of a guarantee not possible according to Section 131 of the Indian Contract Act, 1872?
