1) A Continuing guarantee may be revoked for further transactions :


A) Before five months


B) Within three months


C) At any time


D) May not be revoked



Answer : C 



 
2) A, B and C as sureties for D, enter into three several bonds, each in a different penalty, namely, A in the penalty of 10,000 rupees. B in that of 30,000 rupees, C in that of 50,000 rupees, conditioned for D's duly  accounting to E. D makes default to the extent of 30,000 rupees, A, B, C liable to pay :



A) In ratio 1 : 3 : 5


B) Only B is liable


C) Each liable to pay 10,000 rupees



D) Only C is liable


Answer : C




3) A, B and C are sureties to D for the some of 3,000 rupees lent for E, E makes default in payment. A, B, C are liable



A) To pay 1,000 each


B) Only B is liable


C) Only C is liable



D) Only D is liable



Answer : A



4) Section 133 of Indian Contract Act 1872 provides :



A) Discharge of Surety by variance in terms of a contract


B) Surety's  liability


C) Release of one cosurety does not discharge other


D) Implied promise to indemnity Surety




Answer : A



5) In contract of guarantee, the person who gives the guarantee is known as :


A) Debtor


B) Surety


C) Creditor


D) Principal debtor




Answer : B

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