Podcast
Questions and Answers
What is a 'contract of guarantee'?
What is a 'contract of guarantee'?
- A contract between a creditor and a principal debtor
- A contract between a creditor and a surety
- A contract between a principal debtor and a surety
- A contract to perform the promise or discharge the liability of a third person in case of default (correct)
Who is the 'principal debtor' in a contract of guarantee?
Who is the 'principal debtor' in a contract of guarantee?
- The person who gives the guarantee
- The person to whom the guarantee is given
- The person in respect of whose default the guarantee is given (correct)
- The person who benefits from the guarantee
What is a 'continuing guarantee'?
What is a 'continuing guarantee'?
- A guarantee that covers a transaction with a specific value
- A guarantee that covers a single transaction
- A guarantee that covers multiple transactions over a period of time (correct)
- A guarantee that covers a transaction with a specific time frame
How can a surety be considered liable in a contract of guarantee?
How can a surety be considered liable in a contract of guarantee?
What is the extent of the surety's liability in a contract of guarantee?
What is the extent of the surety's liability in a contract of guarantee?
What can serve as a consideration for a guarantee?
What can serve as a consideration for a guarantee?
What is a contract of indemnity?
What is a contract of indemnity?
What is the promisee entitled to recover from the promisor in a contract of indemnity?
What is the promisee entitled to recover from the promisor in a contract of indemnity?
What does the promisee need to do to recover costs in a contract of indemnity?
What does the promisee need to do to recover costs in a contract of indemnity?
What is the illustration given in the text about a contract of indemnity?
What is the illustration given in the text about a contract of indemnity?
What happens if the promisee in a contract of indemnity acts against the orders of the promisor?
What happens if the promisee in a contract of indemnity acts against the orders of the promisor?
What does the promisee need to do to recover sums paid under the terms of any compromise of any such suit in a contract of indemnity?
What does the promisee need to do to recover sums paid under the terms of any compromise of any such suit in a contract of indemnity?