1. Is indemnity a kind of contingent contract? REASON.

Yes, the contract of indemnity is a kind of contingent contract. Section 124 defines this
contract as “A contract by which one party promises to save the other from loss
caused to him by the conduct of the promisor himself or by the conduct of any other
person is a contract of Indemnity". It is completely related to the contract of contingent
which says that the promisor perform his obligation only when certain conditions are met.

2. When a guarantee does comes to an end and can no longer be enforced?

The guarantee agreement is a contract where one party approaches to pay some money or
to perform an obligation it is a promise to be responsible for another person’s default.
The guarantee provides for the guarantor liability to pay or perform if the relevant 3rd
party fails to pay or perform. The guarantor’s liability only becomes effective upon the
default of the parties by the principal debtor a party. The guarantee normally sets out the
principal obligations together with provisions relating to protection of the creditor, an
indemnity, avoidance or discharge of the guarantee provisions together with express
rights of the guarantor.

3. Plaintiff produced an audio-visual advertisement titled as TAIZ CHALY. As per the

Plaintiff, the Defendant, who was involved in the same business of manufacturing and
marketing of tyres, had produced similar advertisement titled TOUGH TYRES. Plaintiff
filed the suit for claiming infringement (to stop someone) of Copyright in its
Advertisement. Is plaintiff right? Give reason(s).

4. In the absence of lending at the rate of interest, what modes of Islamic Financing can be
used for trade and industry finance?

5. A guarantees payment to B, a tea-dealer, to the amount of £ 100, for any tea he may from
time to time supply to C. B supplies C with tea to above the value of £ 100, and C pay B
for it. Afterwards B supplies C with tea to the value of £ 200. C fails to pay. Shortly
explain Nature of guarantee given by A?
The guarantee given by A was a continuing guarantee, and he is accordingly liable to B
to the extent of £ 100. A continuing guaranty is an agreement by the guarantor to be
liable for the obligations of someone else to the lender, even if there are several different
obligations that are made, renewed or repaid over time.