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The person in respect of whose default, the guarantee is given is called ………..
  • a)
    principal debtor
  • b)
    principal creditor
  • c)
    principal surety
  • d)
    principal bailee
Correct answer is option 'A'. Can you explain this answer?
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The person in respect of whose default, the guarantee is given is call...
Explanation:


  • Principal Debtor: The person in respect of whose default, the guarantee is given is called the principal debtor. This means that the guarantee is provided to ensure that the principal debtor fulfills their obligations towards the creditor.

  • Importance of Principal Debtor: Understanding the role of the principal debtor is crucial in guarantee agreements as it helps in determining the obligations and responsibilities of all parties involved.

  • Legal Protection: By identifying the principal debtor, the guarantee agreement can outline the consequences of default and the actions that can be taken by the creditor to recover the debt.

  • Liability: The principal debtor is the primary party responsible for the debt, and the guarantor steps in only if the principal debtor fails to fulfill their obligations.

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The person in respect of whose default, the guarantee is given is called ………..a)principal debtorb)principal creditorc)principal suretyd)principal baileeCorrect answer is option 'A'. Can you explain this answer?
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