alleryStart learning →A promises to cover B against proceedings C may bring against B for 200 rupees. This is?
AGuarantee
BIndemnity
CBailment
DPledge
Answer & Solution
Correct answer: B. Indemnity
The promise to protect B from the consequences of C's proceedings is an indemnity, as the statutory illustration says.
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
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 themselveA guarantees up to 2,000 for rice supplied; less is supplied but A pays 2,000. A recovers?