Law Sem 3 - Unit 2

The contract to compensate for the loss of another is called contract of _____

• Indemnity

• Guarantee

• Condition

• Warantee

Contract of indemnity is defined in section _____

A contract of guarantee has _____ contracts

• 1

• 2

• 3

• 4

The liability of _____ is secondary

If Mr. Rony agreed to be a surety for the first transection of Mr. Don, then what kind of guarantee is this?

• Specific

• Single

• Contuining

• Onetime

What rights does the surety have against the creditor?

• Right to Subrogation

• Right to set off

• Right to security

• Right to indemnity

Continuing guarantee can be of two types _____ and _____

• Time

• Cost

• Short

• Long

If Mr. X and Mr. Y both agreed to take guarantee of Mr. Z, then what are Mr. X and Y called?

The right of surety of forming a new contract to with the debtor to recover debt id called right of _____

• Subrogation

• Lien

• Indemnity

• Guarantee

After the debtor has defaulted, the creditor can directly sue the surety without suing the debtor

• True

• False