Indemnity and Guarantee Flashcards
How many parties are there in a Contract of Indemnity?nnnn
2
How many parties are there in a contract of indemnity?
Indemnifier
A contract of Indemnity is if one party promises to save the other from loss caused to him by
The conduct of the promisor himself or the conduct of any other person
The party to whom indemnity is called as
Indemnity holder
The indemnity holder has the right to recover
Damages, Costs of the suit and sums paid as a compromise of the suit.
The indemnity holder has no right to recover
Compensation for loss of goodwill
A contract of indemnity is a _______ contract
Contingent contract
A contract to save Mr.S against the consequences of any proceedings which Mr. R may take against Mr. S in respect of certain sum of Rs.100,000 is ___________
Contract of Indemnity
Contact of Insurance is
Contract of Indemnity
The liability of indemnifier towards the indemnity holder is
primary
How many number of parties to a contract of guarantee?
3
How many number of contracts to a contract of guarantee?
3
The person in respect of whose default the guarantee is given is called as
Principal debtor
A contract of guarantee is a contract to ___________, of a third person in case of his default.
Perform the liability
Discharge the liability
A person who gives the guarantee is called as _________ and the person to whom the guarantee is given is called as_______
Surety, Creditor
In a contract of guarantee, the person who promises to discharge the liability of another person is called as ___________ and the person whose liability is promised to be discharged is called as _________.
Surety, Principal debtor
In contract of ________, there are 3 parties
Guarantee
The guarantee is valid even if ________ is incompetent to contract.
Principal Debtor
A guarantee given by an adult to discharge a loan given to a minor is_______.
Valid
Mr. W is a zamindar, Mr. J seeks employment with Mr. W. Mr. W agrees to entrust the task of collecting rents on behalf of Mr. W to Mr. J on the condition that Mr. H promises to be responsible towards Mr. W for due collection and payment of rents by Mr. J. The guarantee given by Mr. H to Mr. W is _______
Continuing guarantee
Revocation of continuing guarantee is effective in respect of
Future transactions
The liability of surety arises
immediately on the default by the principal debtor.
In case of default by the principal debtor, the creditor is entitled to proceed against the surety, ______ first proceeding against the principal debtor.
Without
If, without the consent of the surety, the creditor loses or parts with any security which was provided to him by the principal debtor at the time when the contract of surety was entered into, the surety is ________
Discharged to the extent of the value of the security
A surety has the right of indemnity and right of subrogation against
Principal debtor
A surety has the right to claim securities and right to set off against
The creditor
Any guarantee which the creditor has obtained by means of keeping silence as to material circumstances is
invalid
The surety is entitled to claim from the principal debtor all the sums
rightfully paid by him
A surety has the right to contribution and right to share benefit of securities against______
Co sureties
A,B & C are sureties to D for the sum of Rs. 30,000 lent to E. there is a contract between A,B and C that they shall be liable in the ratio of 1:2:3. E makes a default in payment. AA, B and C are liable to pay to E__________, ________ and ________.
Rs.5000, Rs. 10000 and Rs. 15000
