CAF-4 · Chapter 11 · Question 10 of 10
Any guarantee which has been obtained by means of 'misrepresentation' made by the creditor, or with his knowledge and assent, concerning a material part of the transaction, is:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Invalid (Invalidated).
Explanation
Section 142 states that a guarantee obtained by misrepresentation is invalid.
More Indemnity and guarantee MCQs
- Q2In a contract of guarantee, the person who gives the guarantee is called the ________, the person for whom it is given is the ________…
- Q3A contract by which one party promises to save the other from loss caused to him by the conduct of the promisor himself, or by the conduct…
- Q4In a contract of indemnity, there are ________ parties, whereas in a contract of guarantee, there are ________ parties.
- Q5The liability of the surety is 'co-extensive' with that of the principal debtor. This means:
- Q6A guarantee which extends to a series of transactions is called a: