New SIDBI Grade A New Batch Starts on Nov 18

    Register

    Question

    What does contract of guarantee means?

    A Contract for the delivery of goods by one person to another for some purpose Correct Answer Incorrect Answer
    B Contract to perform the promise or to discharge the liability of a third person in case of his default Correct Answer Incorrect Answer
    C Contract to perform the promise or to discharge the liability of a third person Correct Answer Incorrect Answer
    D Contract where one party promises to save the other from any loss caused to him by the conduct of the promisor himself or by the conduct of any other person Correct Answer Incorrect Answer

    Solution

     It means a contract to perform the guarantee or discharge the liabilities of the person just in case he fails to discharge such liabilities. In other words, a contractual arrangement in which one party gives a guarantee for another regarding the fulfillment of a promise or repayment of the debt when the latter fails to discharge the liability or perform the undertaking.

    Practice Next