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  • 183 - 26 Dec 2022 - Niharika Rajput

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    Niharika Rajput
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    The document contains answers to two questions about business law. For the first question on features of a contract of guarantee, the answer lists four key features: the surety's obligation depends on the principal debtor's default; separate consideration for the guarantee is not necessary; the principal debtor need not be competent to contract; and there must be an existing debt or promise whose performance is guaranteed. For the second question on rights of an indemnity holder, the answer lists three rights: the right to recover damages, the right to recover costs incurred, and the right to recover sums paid during compromise.

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    The document contains answers to two questions about business law. For the first question on features of a contract of guarantee, the answer lists four key features: the surety's obligation depends on the principal debtor's default; separate consideration for the guarantee is not necessary; the principal debtor need not be competent to contract; and there must be an existing debt or promise whose performance is guaranteed. For the second question on rights of an indemnity holder, the answer lists three rights: the right to recover damages, the right to recover costs incurred, and the right to recover sums paid during compromise.

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    3 views1 page

    183 - 26 Dec 2022 - Niharika Rajput

    Uploaded by

    Niharika Rajput
    The document contains answers to two questions about business law. For the first question on features of a contract of guarantee, the answer lists four key features: the surety's obligation depends on the principal debtor's default; separate consideration for the guarantee is not necessary; the principal debtor need not be competent to contract; and there must be an existing debt or promise whose performance is guaranteed. For the second question on rights of an indemnity holder, the answer lists three rights: the right to recover damages, the right to recover costs incurred, and the right to recover sums paid during compromise.

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    BUSINESS LAW ASSIGNMENT

    Date – 26 December 2022


    Name – Niharika Rajput
    Roll No. 183

    Ques.) What are the various features of the contract of guarantee?


    Ans.) A contract of guarantee is a species of general contract and as such, all the
    essentials of a valid contract must be present. However, it has the following
    special features:
    1. Surety’s Obligation is Dependent on Principal Debtor’s Default
    2. Separate Consideration for Guarantee Not Necessary
    3. Principal-debtor Need Not Be Competent to Contract
    4. There Must Be Existing Debt or Promise Whose Performance Is Guaranteed

    Ques.) What are the rights of the indemnity holder?


    Ans.) The rights of the indemnity holder are the following:
    1. Right to recover damages (Section 125(1))
    2. Right to recover the costs incurred (Section 125(2))
    3. Right to recover sums paid during compromise (Section 125(3))

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