Special Contracts

______ is the bailment of goods as security for payment of a debt or performance of a promise

• Equitable Mortgage

• Pledge

• Gratuitous Bailment

• Mortgage

The delivery of goods by one person to another for some specific purpose and time is known as:

• Equitable Mortgage

• Pledge

• Bailment

• Hypothecation

When a customer gives his/her valuables, Securities to the bank for safe keeping then the customer became the _______

• Bailor

• Creditor

• Debtor

• Bailee

When a bank grants loan or other credit facilities to the customer then the Banker is ____

• Borrower

• Creditor

• Debtor

• Agent

A non-gratuitous bailment or bailment for reward is one that involve some consideration passing between the bailor and the bailee.

• True

• False

• Partly True

• Partly False

Which of the following is not covered under the ‘contract of Indemnity’?

• Fire insurance

• Theft insurance

• Life insurance

• Marine insurance

Who authorizes Mercantile Agents to buy or sell goods?

• Commercial Agent

• Principal

• Broker

• Banker

Legislation may provide that a contract must be made in writing, or that a contract is not enforceable unless evidenced in writing. Is it true that, if there are no written formalities, the contract will be void in both instances?

• True

• False

• Partly True

• Partly False

A contract of guarantee is a tripartite agreement between the __________

• principal debtor, bailor and indemnifier

• pawnor. bailee and indemnity holder

• principal debtor, bailor and surety

• principal debtor, creditor and surety

A principal owes a duty to ________ the agent for any losses the agent suffers because of the principal. This duty usually arises where an agent is held liable for the principal's misconduct.

• indemnify

• Ratify

• Rectify

• Vilify