Ali and Baber come to a shop. Ali tells the shopkeeper. If Baber does not pay you. I will pay this is a?
A. contract of guarantee
B. contract of indemnity
C. contract of pledge
D. none of above
Fraud means a misrepresentation made reckless by without belief in its truth to induce another person to act.
A. True
B. False
Any type of collateral undertaking to be liable for the default of another is called:
A. contract of guarantee
B. contract of indemnity
C. contract of pledge
D. none of above
How many people are in a contract of guarantee?
A. two parties
B. three parties
C. four parties.
D. none of above
A contract of guarantee maybe?
A. oral
B. written
C. both A & B
D. none of above
The liability of the surety is:
A. primary
B. secondary
C. both A & B
D. none of above
Some intentional act or omission or error arising from ignorance, surprise, imposition or misplaced confidence is called a mistake.
A. True
B. False
A surety is liable to pay only when?
A. the creditor requests
B. the principal debtor fails to pay
C. both A & B
D. none of above
The surety must give the guarantee on the request of the?
A. principal debtor
B. creditor
C. both A & B
D. none of above
After paying the debt payable to the creditor, the surety is entitled to proceed against the principal debtor in?
A. his own name
B. name of the creditor
C. both A & B
D. none of above
A person giving guarantee must possess?
A. no interest in a transaction but guarantee
B. some interest n transaction other than a guarantee
C. himself involved in the business
D. none of above
Misrepresentation means to give a false or misleading statement with an intent to influence the opinion of the other
A. True
B. False
How many contracts are in a contract of guarantee?
A. one contract
B. two contracts
C. three contracts
D. none of above
The person who gives the guarantee is called?
A. creditor
B. surety
C. principal debtor
D. none of above
Majid was invited to give the guarantee of a servant of Zahid. Zahid the employer did not disclose this thing to Majid that same servant was dismissed for dishonesty. The servant robbed the house.
A. Majid is (the surety) liable to pay Zahid
B. Majid is not liable to pay Zahid
C. Majid & Zahid both will share loss
D. None of the above
Novation defined as “the substitution of a new contract for an old one”.
A. True
B. False
The discharge of principal debtor is?
A. is the discharge of surety as well
B. does not discharge the surety
C. As no more principal debtor no surety
D. none of above
A surety is liable on default by?
A. principal debtor
B. creditor
C. both A & B
D. none of above
Aslam in consideration that Bilal will collect rents for Hanif’s property, promises Hanif to be responsible for the amount of Rs.20,000/-. This is a contract of?
A. Indemnity
B. Guarantee
C. continuing guarantee
D. none of above
Akram guarantees to Sajid, to the extent of Rs. 10,000/- that Bilal shall pay all the bills that Sajid sh6ll draw upon him, Sajid draws the bill and Bilal accepts the bill. Akram gives notice of revocation. Bilal dishonors the bill at maturity.
A. Akram’s guarantee is no more valid
B. Akram is liable upon his guarantee
C. guarantee is not liable due to revocation
D. none of above
