In one of the following ways a surety can be discharged from his liability:
A. as he has no more interest
B. he feels the business not profitable
C. by revocation
D. none of above
In the absence of a contract to the contrary, the death of surety operates as:
A. surety will be carried on by the legal heirs
B. a notice of revocation
C. both A & B
D. none of above
An agreement enforced by law is a contract.
A. True
B. False
Rasheed and Ahsan agreed to substitute for a new contract for an old one. This will be called:
A. revocation
B. breach, of contract
C. novation
D. none of above
Majid stands as a surety in a contract between Tufail and Asif. Tufail and Asif made some variations in the term of the contract. If they do it without the consent of Majid. In case of any default now:
A. Majid is no more liable
B. Majid’s guarantee is still liable
C. Majid’s guarantee is no more liable
D. none of above
Imran appointed Akram as a clerk on a salary basis to sell the goods. All gave guarantee to Akram. Afterward, without the knowledge of Ali, Imram agreed to pay commission to Akram on goods sold by him. Now is a case of any subsequent misconduct of Akram.
A. Ali is liable as surety
B. All is discharged from surety
C. Imran and Akram have right to look towards surety
D. none of above
An agreement not enforceable by law is void agreement.
A. True
B. False
An agreement which is enforceable by law at the option of one or more of the parties.
A. True
B. False
Ahmed contracts will Baber for a fixed period to build a house for Baber, within a stipulated time. Baber supplying the necessary timber. Qadir guarantees Ahmed’s performance. Baber omits to provide the Timber. Now?
A. Qadir will be held responsible
B. Qadir is discharged from his suretyship
C. Qadir is liable to pay
D. none of above
Imran and Raza entered in a contract. Arshad guarantees Imran’s conduct. During the course of contract, Imran becomes insolvent.
A. Arshad is not liable to pay
B. Arshad is discharged from liability
C. Arshad is not discharged from suretyship
D. none of above
If there are three sureties. Discharge of any one of them by creditor will.
A. automatically discharge the other
B. does not discharge the others
C. both A & B
D. none of above
A creditor does an act or omission the legal consequences of which is the discharge of the principle debtor. This will?
A. discharge the surety too
B. not discharge the surety
C. not show that surety is no more liable
D. none of above
Mere forbearance on the part of the creditor to sue the principal debtor or to enforce any other remedy against the principal debtor
A. discharges-the surety
B. does not discharge the surety
C. both A & B
D. none of above
Any guarantee which has been obtained by means of misrepresentation made by the creditor, or with his knowledge and assent, concerning a material part of the transaction is?
A. an invalid guarantee
B. valid guarantee
C. both A & B
D. none of above
Any guarantee obtained by a creditor by concealment of material circumstances is?
A. valid guarantee
B. an invalid guarantee
C. both A & B
D. none of above
Substantial failure of consideration as between the creditor and the principal debtor in a contract of guarantee?
A. discharges the surety
B. does not discharge the surety
C. discharge of consideration
D. none of above
If some surety signed under the impression that others were going to join the suretyship, and if they don’t
A. even then he is liable to his guarantee
B. he is discharged from his suretyship
C. both A & B
D. none of above
Agency is a two parties relationship in which one person acts as representative to the other in business dealings.
A. True
B. False
Agency may be created by?
A. words of mouth
B. an agreement in writing
C. both A & B
D. none of above
A. True
B. False
