CAF-4 · Chapter 11 · Question 2 of 10
In a contract of guarantee, the person who gives the guarantee is called the ________, the person for whom it is given is the ________, and the person to whom it is given is the ________.
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Surety; Principal Debtor; Creditor
Explanation
These are the three parties in a contract of guarantee under Section 126.
More Indemnity and guarantee MCQs
- 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:
- Q7A continuing guarantee may at any time be 'revoked' by the surety, as to future transactions, by:
- Q8The death of the surety operates as a 'revocation' of a continuing guarantee, so far as regards 'future' transactions: