CAF-4 · Chapter 11 · Question 4 of 10
In a contract of indemnity, there are ________ parties, whereas in a contract of guarantee, there are ________ parties.
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Two; Three
Explanation
Indemnity involves only the indemnifier and indemnity-holder. Guarantee involves the surety, principal debtor, and creditor.
More Indemnity and guarantee MCQs
- 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:
- Q9If the creditor makes any 'variance' (change) in the terms of the contract between himself and the principal debtor, without the surety's…
- Q10Any guarantee which has been obtained by means of 'misrepresentation' made by the creditor, or with his knowledge and assent, concerning a…