Guarantee

Question 1

Principal debt necessary in Contract of guarantee, in this case the ultimate balance was not decided.

Answer 1

Punjab national bank v Vikram cotton mills

Question 2

when creditor refrains from suing principal debtor when payment becomes due, that is sufficient consideration.

Answer 2

Madan Lal Sobe v Rajasthan State Industrial Development & Investment Corporation Ltd

Question 3

Securities lost by bank, surety would be discharged upto that security

Answer 3

Amritlal Goverdhan Lalan v State bank of Travancore

Question 4

Surety cannot dictate whom the creditor to sue, the creditor has the discretion to choose whom to sue, and surety cannot say that the creditor needs to sue the Principal debtor first.

Answer 4

Central Bank of India v C.L Vimla

Question 5

If variance in the contract does not affect the surety or benefits the surety, the surety is not discharged

Answer 5

M S Anirudhan v Thomco’s Bank Ltd