Question
With reference to Section 126 of The Indian Contract
Act, 1872 read the following statements and select the correct option from below: 1. Guarantee must always be written 2. A guarantee may either be either oral or writtenSolution
Section 126.Ā Ā "Contract of guarantee", "surety", "principal debtor" and "creditorā- A "contract of guarantee" is a contract to perform the promise, or discharge the liability, of a third person in case of his default. The person who gives the guarantee is called the "surety"; the person in respect of whose default the guarantee is given is called the "principal debtor", and the person to whom the guarantee is given is called the "creditor". A guarantee may be either oral or written.
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