alleryStart learning →Surety's liability can differ from the principal debtor's only if what?
AThe creditor is a bank
BThe debt exceeds Rs 1 lakh
CThe debtor is insolvent
DThe contract so provides
Answer & Solution
Correct answer: D. The contract so provides
Co-extensive liability is the default and gives way only to a contrary provision in the guarantee contract.
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