The continuing guarantee is supposed to be revoked at the?
A. death of surety
B. announcement of surety
C. both A & B
D. none of above
A surety can be?
A. limit his liability
B. cannot limit his liability
C. principal debtor will set his liability
D. none of above
If a guarantee extends to service of a transaction is called?
A. continuing guarantee
B. limited guarantee
C. both A & B
D. none of above
Bilal and Aslam entered in a contract with Saleem as surety of Bilal. The contract was held voidable at the option of Bilal:
A. Saleem (the surety) i$ discharge from his guarantee
B. the surety is not discharged from a guarantee
C. the surety may or may not avoid his guarantee
D. None of the above
“Performance means doing of a thing or a part thereof in accordance with an agreement”.
A. True
B. False
The discharge of principal debtor by operation of law:
A. also discharges the surety
B. does not discharge the surety
C. both A & B
D. none of above
Saif and Nabeel entered in a contract with Kaleem providing a guarantee for Nabeel the principal debtor. Before the liability was discharged, Nabeel died. Now the surety.
A. is not liable to pay
B. liable to pay
C. death of principal debtor also discharged the surety
D. none of above
A surety has the right of subrogation against the:
A. creditor
B. principal debtor
C. co-sureties
D. none of above
The surety has a right to be indemnified by the:
A. principal debtor
B. creditor
C. co-sureties
D. none of above
The surety has a right to benefit of:
A. the property of a principal debtor
B. the property of the creditor
C. both A & B
D. none of above
Breach of contract is a failure to perform the obligations under the contract.
A. True
B. False
Akram being the surety in a deal, does not know about the existence of some property of Imran the creditor. In this situation, the surety has a right.
A. to benefit of creditor’s property
B. not to be benefited from creditor’s such property
C. both A & B
D. none of above
Ashraf, Ali, and Zubair are sureties to Baber for the sum of Rs. 300,000/- lent to Saqlain, Saqlain makes default. Now?
A. only Ali is responsible to pay 300,000/-
B. only Zubair and Ashraf arc liable to pay 150,0001-each
C. Ashraf, Ali & Zubair all are liable to pay 100,000/- each
D. None of the above
Competency is the legal qualification, capacity, power or fitness.
A. True
B. False
If one of the co-sureties pays the major amount in case of default he has:
A. no right to, claim extra paid amount from other sureties
B. A right to claim the additional amount paid from other sureties
C. both A & B
D. none of above
Ahmad one of the co-sureties received benefit from the property of the creditor. Majid and Saleem the other sureties.
A. is entitled to share the benefit
B. are not entitled to receive a share from such property
C. only the surety receives the property is entitled
D. none of above
Waseem, Imran, and Asif are sureties for Majid guaranteeing different amounts. Waseem for 100,000/- Imran for 200,000/- and Asif for 400,0001- Majid makes the default of Rs. 300,000/- Now?
A. only Asif is liable to pay
B. only Waseem and Imran are liable to pay
C. the liability of Waseem, Imran and Asif are Rs. 100,000/- each
D. none of above
Is every agreement & promise enforceable at law is a contract?
A. True
B. False
A surety can be discharged from liability in one of the following cases?
A. according to his own will
B. by the invalidation of the contract of guarantee
C. If he is no more interested in the guarantee
D. none of above
Ali brain the surety in a transaction finds out that the conduct of the creditor is not according to the terms and conditions of the contract. Now Ali?
A. may be discharged from his liability
B. cannot discharge from his liability
C. All are bound to be strict will the guarantee
D. none of above
