Whose Consent Is Necessary in the Contract of Guarantee Mcq

The subraw right means that since the guarantor had given a guarantee to the creditor and the creditor is no longer at the scene of the crime after receiving the payment, the guarantor will now treat the debtor as if he were a creditor. Therefore, the guarantor has the right to claim the amount he has paid to the creditor, which may include principal, costs and interest. 11. A concludes with B that if A practices as a surgeon in Calcutta, he will pay B Rs. 5,000. A surgeon`s office in Kolkata. 18. A deposit of contractual disposition in a commercial contract may not be called into question: F.18:- A contract in which one party undertakes to protect the other against losses suffered by it as a result of the course of the promise itself or by the conduct of another person is designated as follows: (b) On the recommendation of M S, a wealthy owner employs P as administrator of his estate. It was P`s duty to collect rent from S tenants each month and transfer it to S by the 15th of each month. M, guarantee this agreement and undertake to compensate for any mistakes made by P. This is a contract for the continuous warranty.

92. The principle of quasi-confiscation or debt prevention is more accurately stated that if, in the absence of a new consideration, a Contracting Party agrees not to assert its rights, equity shall be raised in favour of another Party, subject to the restriction that: Q.48:- An agent who guarantees his principal in exchange for a commission additional to the persons with whom he concludes a contract on behalf of the Committing, fulfilling their obligations: A warranty contract can be revoked in two ways: 71. In this case, it has been decided that if the arbitrator acts in defiance of the contract and without jurisdiction, he commits a legal fault: Q.7: In case of breach of contract, what remedy is available to the party who has suffered: if the creditor or with his knowledge or consent makes a false statement regarding an important fact in the guarantee contract, The contract is invalid In the event of default by the principal debtor, the guarantor has the right, if it settles the debt of the principal debtor, to demand all the guarantees that the principal debtor has given to the creditor. The guarantor is entitled to all securities, whether they were obtained before or after the creation of the guarantee, and it also does not matter whether the guarantor is aware of these securities or not. K gave his house to S with a ten-year lease at a fixed rent. P guaranteed that S would fulfil its obligations. After seven years, S stopped paying the lease rent. “K sued him for paying the rent. P then terminated its warranty for the remaining three years. P would not be able to withdraw the guarantee, since the ten-year lease represents an entire indivisible consideration and cannot be described as a series of transactions and therefore does not constitute a permanent guarantee. III. the applicant cannot prove the damage he may have suffered as a result of the failure to fulfil obligations A.

A is entitled to receive from B as compensation the average amount of profits allegedly made by the operation of the plant during the period during which delivery was delayed, as well as the damage suffered as a result of the loss of the government contract. If such debts do not exist, there is nothing left to guarantee for the guarantor. In cases where the debt is time-barred or void, there is therefore no liability on the part of the guarantor. The House of Lords in the Scottish case of Swan vs. Bank of Scotland (1836) ruled that if there is no principal debt, there can be no valid guarantee. 14. It is incumbent on B to carry out certain works at a fixed price B which supply scaffolding and wood and the work cannot be carried out. We can also understand that a collateral arrangement is a secondary contract that results from a principal contract between the creditor and the principal debtor. Since a warranty contract is a type of contract, all essential aspects of a valid contract also apply in warranty contracts.

Thus, all the essential requirements of a valid contract such as free consent, offer and acceptance of valid consideration, intention to justify, etc. must be met. Q.15:- The person whose failure to give the guarantee is named: 8. A undertakes to supply B with a certain quantity of iron at a fixed price higher than that for which A could obtain and supply the iron. B wrongly refuses to receive iron. Warranty contracts can be divided into two types: the specific warranty and the long-term warranty. If a guarantee is given for a single debt or a specific transaction and ends when the secured debt is paid or the commitment is properly fulfilled, this is called a specific or simple guarantee. However, a guarantee which covers a certain number of operations is called a continuous guarantee (Article 129).

In this case, the guarantor`s liability would continue until all transactions have been concluded or until the guarantor revokes the guarantee for future transactions. 16. A order B for the manufacture and delivery of a particular machine within a specified period at a certain price at B. A does not deliver the machine part at the specified time and thereafter; B is required to purchase another one at a higher price than it should have paid to A and is prevented from performing a contract that B had entered into with a third party at the time of its contract with A (which was then not communicated to A) and is obliged to pay compensation for the breach of that contract. In a warranty contract, the liability of a guarantor is secondary. This means that, since the principal contract existed between the creditor and the principal debtor, the responsibility for the performance of the terms of the contract lies primarily with the principal debtor. Only in the event of default by the principal debtor is the guarantor obliged to repay. Q.12: – A contract for the execution of the promise or for the execution of the liability of a third party in case of defect is designated as follows: A warranty contract can be oral or written. They may arise expressly or implicitly from the conduct of the parties.

Ankita grants Pallav a loan of INR 70,000. Srishti, Pallav`s leader, promises that if Pallav cannot repay the loan, she will repay the same. In this case of a guarantee contract, Ankita is the creditor, Pallav the main debtor and Srishti the guarantor. In the absence of a contract to the contrary, the liability of a guarantor is identical to that of the principal debtor. This means that the guarantor is liable to the same extent as the principal debtor. Creditor – The party who has given something of value to take out loans and who will receive payment for such a thing and who will receive the guarantee 20. A delivers to B, an ordinary conveyor, a machine to be transported immediately to the mill of A, and informs B that this mill will be stopped for lack of machinery. .