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Questions on Indemnity and Guarantee

Indemnity and Guarantee Question Bank:

Ques. The person in respect of whose default, the guarantee is given is called ………..
(a) principal debtor
(b) principal creditor
(c) principal surety
(d) principal bailee

Ans. (a)

Ques. In the contract of Indemnity ……….. to promise is essential.
(a) profit
(b) loss
(c) none of these
(d) benefit

Ans. (b)

Ques. Liability for paying money ………..
(a) secondary liability
(b) co-related liability
(c) preliminary liability
(d) subsidiary liability

Ans. (c)

Ques. In contract of indemnity how many parties are required ?
(a) 4
(b) 6
(c) 7
(d) 2

Ans. (d)

Related: Copyright and Trademark Rights (IPR) in India

Ques. The guarantee of single transaction is ………..
(a) general guarantee
(b) continuous guarantee
(c) implied guarantee
(d) none of these

Ans. (a)

Ques. In which type of contract promise is being protected ?
(a) Contract of guarantee
(b) Contract of agency
(c) Contract of indemnity
(d) Contract of bailment

Ans. (c)

Ques. Which type of guarantee is given for series of transaction ?
(a) general guarantee
(b) implied guarantee
(c) continuous guarantee
(d) general and continuous guarantee

Ans. (c)

Ques. Life insurance contract is an indemnity contract in India ?
(a) Limited
(b) No
(c) Ambiguity
(d) Yes

Ans. (b)

Related: Bailment Question Bank

Ques. The person to whom the guarantee is given is called ………..
(a) creditor
(b) debtor
(c) surety
(d) third party

Ans. (a)

Ques. The contract of Guarantee should be ………..
(a) Implied
(b) only written
(c) only oral
(d) written or oral

Ans. (d)

Ques. Liability of surety is ………..
(a) secondary liability
(b) preliminary liability
(c) subsidiary liability
(d) co-related liability

Ans. (a)

Ques. In contract of indemnity must be ………..
(a) five parties
(b) agreement without consideration
(c) implied consideration
(d) lawful consideration and object

Ans. (d)

Related: Syllogism test

Ques. Who is protected under the contract of guarantee ?
(a) guarantor
(b) creditor
(c) third person
(d) debtor

Ans. (b)

Ques. Whose consent is necessary in the contract of guarantee ?
(a) Surety
(b) Creditor
(c) Debtor
(d) All as under

Ans. (d)

Ques. On whose default, the promise of discharge of liability is given in contract of guarantee ?
(a) Principal debtor
(b) Subsidiary debtor
(c) Principal guarantor
(d) All above

Ans. (a)

Ques. How many parties are there in contract of guarantee ?
(a) One
(b) At will
(c) Three
(d) Two

Ans. (c)

Related: Intelligence and reasoning Model Questions

Ques. The contract of guarantee is for protection of ………..
(a) creditor
(b) debtor
(c) guarantor
(d) none of these

Ans. (a)

Ques. The liability of surety is exact nature of ………..
(a) subsidiary guarantor
(b) principal debtor
(c) implied guarantor
(d) subsidiary debtor

Ans. (b)

Ques. When guarantor becomes free ?
(a) By increase of liability
(b) None of these
(c) Change in terms of contract
(d) By getting benefit

Ans. (c)

Tags: Last modified: July 26, 2023
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