Guarantee given on condition that co-surety Y joins; Y never joins. Result?
AX is liable half
BX is liable fully
CY is liable instead
DGuarantee is invalid
Answer & Solution
Correct answer: D. Guarantee is invalid
Section 144 makes such a guarantee invalid if the named co-surety does not join.
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