CA Foundation Contract of Indemnity and Guarantee — practice questions
26 free MCQs with worked solutions. Tap any question for the answer + explanation, or practice them all in the app.
Practice CA Foundation Contract of Indemnity and Guarantee in the app →Under Section 124, a 'contract of indemnity' is one by which a party promises to save the other from loss causHow many parties are there to a contract of indemnity?As defined in Section 124, a loss occasioned by an act of God or a pure accident is:Under Section 125, an indemnity-holder acting within his authority can recover from the indemnifier all damageThe liability of the indemnifier generally commences:Which of the following is NOT a contract of indemnity?A asks B to beat C, promising to indemnify B against the consequences. This indemnity is:A contract of guarantee under Section 126 involves how many parties?Under Section 127, with respect to consideration for a guarantee:Where the principal debtor is a minor (incompetent to contract) but the surety is competent, the guarantee is:Under Section 126, a contract of guarantee:A guarantee obtained by the creditor by misrepresenting or concealing a material part of the transaction is:A guarantee that extends to a series of transactions is called a:A guarantee confined to a single debt or transaction, which ends once that debt is discharged, is a:Under Section 128, the liability of the surety is:In which situation may a surety be liable even though the principal debtor is not?Under Section 130, a continuing guarantee may be revoked by the surety as to:Under Section 131, in the absence of a contrary contract, the death of the surety:Under Section 133, a variance in the terms of the contract between creditor and principal debtor made without Under Section 134, the surety is discharged when the creditor:Under Section 135, a contract by which the creditor compounds with, gives time to, or promises not to sue the Under Section 137, mere forbearance by the creditor to sue the principal debtor:Under Section 139, if the creditor does an act inconsistent with the surety's rights, or omits a duty owed to On paying the guaranteed debt, the surety acquires all the rights the creditor had against the principal debtoUnder Section 141, a surety is entitled to the benefit of every security the creditor holds against the princiUnder Section 146, in the absence of a contrary agreement, co-sureties for the same debt are liable to: