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A contract of guarantee under Section 126 involves how many parties?
AFour
BTwo
COne
DThree — surety, principal debtor and creditor
Answer & Solution
Correct answer: D. Three — surety, principal debtor and creditor
A guarantee is a tripartite arrangement among the surety (who guarantees), the principal debtor (whose default is guaranteed) and the creditor (to whom it is given).
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