CA Foundation Exam  >  CA Foundation Questions  >  In a contract of guarantee:a)there are two pa... Start Learning for Free
In a contract of guarantee:
  • a)
    there are two parties and one contract
  • b)
    there are two parties and two contracts
  • c)
    there are three parties & three contracts
  • d)
    there are three parties & one contract.
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
In a contract of guarantee:a)there are two parties and one contractb)t...



Contract of Guarantee:


  • Parties Involved: In a contract of guarantee, there are three parties involved - the creditor, the principal debtor, and the surety (guarantor).


  • One Contract: Despite there being three parties, there is only one contract in a contract of guarantee. The contract is between the creditor and the surety, where the surety agrees to pay the debt of the principal debtor if they default.


  • Legal Relationship: The contract of guarantee creates a legal relationship between the three parties mentioned above. The surety is liable to fulfill the obligations of the principal debtor in case of default.


  • Liability: The liability of the surety is secondary to that of the principal debtor. The surety's obligation to pay arises only when the principal debtor fails to do so.



Explore Courses for CA Foundation exam
In a contract of guarantee:a)there are two parties and one contractb)there are two parties and two contractsc)there are three parties & three contractsd)there are three parties & one contract.Correct answer is option 'D'. Can you explain this answer?
Question Description
In a contract of guarantee:a)there are two parties and one contractb)there are two parties and two contractsc)there are three parties & three contractsd)there are three parties & one contract.Correct answer is option 'D'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about In a contract of guarantee:a)there are two parties and one contractb)there are two parties and two contractsc)there are three parties & three contractsd)there are three parties & one contract.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In a contract of guarantee:a)there are two parties and one contractb)there are two parties and two contractsc)there are three parties & three contractsd)there are three parties & one contract.Correct answer is option 'D'. Can you explain this answer?.
Solutions for In a contract of guarantee:a)there are two parties and one contractb)there are two parties and two contractsc)there are three parties & three contractsd)there are three parties & one contract.Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation. Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of In a contract of guarantee:a)there are two parties and one contractb)there are two parties and two contractsc)there are three parties & three contractsd)there are three parties & one contract.Correct answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of In a contract of guarantee:a)there are two parties and one contractb)there are two parties and two contractsc)there are three parties & three contractsd)there are three parties & one contract.Correct answer is option 'D'. Can you explain this answer?, a detailed solution for In a contract of guarantee:a)there are two parties and one contractb)there are two parties and two contractsc)there are three parties & three contractsd)there are three parties & one contract.Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of In a contract of guarantee:a)there are two parties and one contractb)there are two parties and two contractsc)there are three parties & three contractsd)there are three parties & one contract.Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice In a contract of guarantee:a)there are two parties and one contractb)there are two parties and two contractsc)there are three parties & three contractsd)there are three parties & one contract.Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
Explore Courses for CA Foundation exam

Top Courses for CA Foundation

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev