Check Questions on Indemnity and Guarantee for practice in our education section on e akhabaar
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)
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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)
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Jaspreet Singh
Jaspreet (Masters in Commerce) not only have exceptional command of Accounts and Commerce subjects but also have keen interest in Law. He is consistent in producing high quality assignments.
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