alleryStart learning →Compromise sums are recoverable under Section 125 if the compromise was what?
AApproved by a court
BMade after judgment
CMade with a lawyer
DPrudent, not defiant
Answer & Solution
Correct answer: D. Prudent, not defiant
Section 125(3) permits recovery of compromise payments only when the compromise did not defy the promisor's orders and was prudent, or was authorised.
Keep practising Contract of Indemnity and Guarantee
Browse all Contract of Indemnity and Guarantee questions for CA Foundation, or explore more Businesslaw topics.
Related questions
A promises to cover B against proceedings C may bring against B for 200 rupees. This is?Section 147 states that co-sureties bound in different sums are liable to pay how, within With bonds of 10,000, 20,000, 40,000 and a 40,000 default, what do the first two sureties Sureties with bonds of 10,000, 20,000, 40,000 face a 30,000 default. Each pays?Do co-sureties under separate contracts, unaware of each other, share equally?Sureties A, B, C agreed to bear 1/4, 1/4 and 1/2 of a 1,000 debt. What does C bear?A, B and C are sureties to D for 3,000 rupees lent to E, who defaults. With no contrary coCo-sureties for the same debt, absent a contrary contract, must contribute among themselve