CAF-4 · Chapter 11 · Question 9 of 10
If the creditor makes any 'variance' (change) in the terms of the contract between himself and the principal debtor, without the surety's consent, the surety is:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Discharged as to transactions subsequent to the variance.
Explanation
Section 133 provides that any variance made without the surety's consent discharges the surety as to all transactions after the change.
More Indemnity and guarantee MCQs
- Q1A contract of guarantee is a contract to perform the promise, or discharge the liability, of a third person in case of his:
- 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: