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Under the contract of guarantee, a creditor:
  • a)
    has to avail his remedies first against the principal debtor
  • b)
    can avail his remedies against the principal debtor as well as the surety
  • c)
    can avail his remedy against the surety alone
  • d)
    both (b) & (c)
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
Under the contract of guarantee, a creditor:a)has to avail his remedie...
Explanation:


  • Contract of Guarantee: A contract of guarantee is a contract to perform the promise or discharge the liability of a third person in case of his default.

  • Creditor's Remedies: The creditor can enforce his rights under the contract of guarantee against the surety.

  • Avail Remedies: The creditor has the option to avail his remedies first against the principal debtor before proceeding against the surety.

  • Sequence of Remedies: Typically, the creditor must exhaust all remedies against the principal debtor before pursuing the surety for payment.

  • Legal Protection: This sequence is designed to protect the surety and ensure that the principal debtor is given the opportunity to fulfill his obligations before the surety is held liable.


By following this sequence, the creditor can ensure that all parties involved are given fair treatment and the right to fulfill their obligations under the contract of guarantee.
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Under the contract of guarantee, a creditor:a)has to avail his remedies first against the principal debtorb)can avail his remedies against the principal debtor as well as the suretyc)can avail his remedy against the surety aloned)both (b) & (c)Correct answer is option 'A'. Can you explain this answer?
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Under the contract of guarantee, a creditor:a)has to avail his remedies first against the principal debtorb)can avail his remedies against the principal debtor as well as the suretyc)can avail his remedy against the surety aloned)both (b) & (c)Correct answer is option 'A'. 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 Under the contract of guarantee, a creditor:a)has to avail his remedies first against the principal debtorb)can avail his remedies against the principal debtor as well as the suretyc)can avail his remedy against the surety aloned)both (b) & (c)Correct answer is option 'A'. 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 Under the contract of guarantee, a creditor:a)has to avail his remedies first against the principal debtorb)can avail his remedies against the principal debtor as well as the suretyc)can avail his remedy against the surety aloned)both (b) & (c)Correct answer is option 'A'. Can you explain this answer?.
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