The Indian Contract Act, 1872 – Test 4

A contract of indemnity shall be valid only if it is ___________

The indemnity holder has the right to __________

There are __________ parties in the contract of guarantee

There are _________ contracts in a contract of guarantee

The person in respect of whose default the guarantee is given is called as _________

A contract of guarantee is a contract to ___________, of a third person in case of a third person in case of his
default.

The person who gives the guarantee is called as __________ and the person to whom guarantee is given is
called as __________

The guarantee is valid even if ___________is incompetent to contract.

A guarantee given by an adult to discharge a loan given to minor is __________

Statement (1): A guarantee given in respect of time barred debt is valid, although the principal debtor is not
liable.
Statement (2): A guarantee given to discharge a debt which is not legally enforceable is not valid.

Consideration received by ___________ is sufficient consideration for _________

Statement (1): The contract of guarantee may provide that the surety shall be liable only for a part of the debt
payable by the principal debtor.
Statement (2): Unless the contract of guarantee otherwise provides, the surety shall be liable for all the debts
payable by the principal debtors to the creditors

Statement (1): In a continuing guarantee, the surety may fix a limit on his liability upto which the guarantee shall
remain effective.
Statement (2): In a continuing guarantee, the surety may fix a time period during which the guarantee shall
remain effective

The liability of surety is __________

The liability of surety arises ___________

The surety is not discharged if a contract to give time to the principal debtor is made by the creditor with
____________

Statement (1): In case of co-sureties, a release by the creditor of one of them does not discharge the others.
Statement (2): In case of co-sureties, a release by the creditor of one of them results in discharge of the surety so
released from his liability towards other co-sureties.

If the creditor does any act which is ___________ with the right of the surety and the eventual remedy of the
surety against ___________ is thereby impaired, the surety is discharged.

A surety has the right of indemnity and right of subrogation against __________

A surety has the right to claim securities and right of set-off against ___________

Statement (1): A surety is entitled to the benefit of every security which the creditor has against the principal
debtor at the time when the contract of suretyship was entered into.
Statement (2): A surety is entitled to the benefit of every security which the creditor has against the principal
debtor, whether or not the surety knows of the existence of such security

Any guarantee which the creditor has obtained by means of __________, is invalid.

Where a person gives a guarantee upon a contact that the creditor shall not act upon it until another person has
joined in it as co-surety, the guarantee is _________, __________

The surety is entitled to claim from the principal debtor all the sums _________

A surety has the right to contribution and right to share benefit of securities against ___________

Statement 1: Rights given under section 125 are not exhaustive.
Statement 1: Indian Contract Act is silent about the rights of Indemnifier. However, they are similar to rights of
surety.

A contract of guarantee may be

Who has the right to sue a third party who causes any damage to the goods or deprives the bailee from using the
goods?

A Del credre agent acts as

In which of the following cases, agent is personally liable