Site navigation

A contract of guarantee has been defined under Section __________ of the Indian Contract Act 1872.

Section 126 of the Indian Contract Act, 1872 defines a contract of guarantee. It is an undertaking to perform a third person’s promise or discharge that person’s liability…

Choose your answer

A contract of guarantee has been defined under Section __________ of the Indian Contract Act 1872.

Select one answer
Answer and explanation

Correct answer D

Section 126 of the Indian Contract Act, 1872 defines a contract of guarantee. It is an undertaking to perform a third person’s promise or discharge that person’s liability in the event of default. The provision also identifies the surety, principal debtor and creditor.

Practice for these exams

Related question papers

Related exam syllabi

Related questions in this topic