CAF-4 · Chapter 11 · Question 3 of 10
A 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 of any other person, is a:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Contract of Indemnity.
Explanation
This is the definition of a contract of indemnity under Section 124.
More Indemnity and guarantee MCQs
- 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:
- Q9If the creditor makes any 'variance' (change) in the terms of the contract between himself and the principal debtor, without the surety's…