1. Right of Indemnity Holder is specified in ----
a) Section 126
b) Section 125
c) Section 124
d) Section 122
2. X and Y go into the shop. Y says to the shopkeeper ‘let him have the goods, I will see you paid’. This is a contract of ------
a) Guarantee
b) Bailment
c) Indemnity
d) pledge
3.Contract of Indemnity as defined in the Indian Contract Act, 1872 covers only ------
a) Liability incurred by something done by the indemnified at the request of the indemnifier
b) Indemnity for loss caused by human agency
c) Indemnity arises from loss caused by the events or accidents which do not depend upon the conduct of indemnifier or any other person
d) None of the above
4. Which one of the following is not a party to a contract of guarantee?
a) Principal Debtor
b) Creditor
c) Surety
d) Pawnor
5.Anything done or any promise made, for the benefit of the principal debtor, may be a sufficient consideration to the surety for giving the guarantee. The statement is
a) True
b) False
c) Partly correct
d) none of the above
6. In a contract of guarantee, the person to whom the guarantee is given is known as ------
a) Principal debtor
b) Creditor
c) Surety
d) Bailor
7.In a contract of guarantee, the liability of surety is ------
a) Primary
b) Collateral and secondary
c) Does not arise
d) none of the above
8. Surety is a ----------
a) Favored creditor
b) Favored debtor
c) None of the above
d) Both (A) and (B).
9. A guarantee obtained by means of keeping silence as to
material circumstances is --------
a) Valid
b) void
c) Invalid
d) Voidable
10. A leaves a cow in the custody of B to be taken care of. The cow has a calf. In the absence of any contract to the contrary
a) B is bound to deliver only the cow to A
b) B is bound to deliver the calf as well as the cow to A
c) B is bound to deliver the calf as well as the cow if he is plaid half the price of the calf
d) B is bound to deliver the calf as well as the cow if he is paid one third of the price of the calf.