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Which type of contract is characterised by the roles of a person promising to answer for another's…

Under section 126 of the Indian Contract Act, 1872, the roles in a guarantee are surety, principal debtor and creditor. The surety undertakes to perform the promise or…

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Which type of contract is characterised by the roles of a person promising to answer for another's default, the person whose default is covered, and the person to whom the promise is made?

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Correct answer B

Under section 126 of the Indian Contract Act, 1872, the roles in a guarantee are surety, principal debtor and creditor. The surety undertakes to perform the promise or discharge the liability of the principal debtor if that debtor defaults.

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Option A

Indemnity under section 124 concerns a promise to save another from loss.

Option B

These are the three roles identified in section 126.

Option C

Bailment under section 148 centres on delivery of goods for a purpose and their return or disposal.

Option D

A seller transfers or agrees to transfer property in goods to a buyer for a price.

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