In bank guarantee, the number of parties involved in the agreement are __________ .
A bank guarantee involves three parties: the customer as principal debtor, the bank as surety, and the beneficiary as creditor. Section 126 of the Indian Contract Act, 1872…
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In bank guarantee, the number of parties involved in the agreement are __________ .
Answer and explanation
Correct answer A
A bank guarantee involves three parties: the customer as principal debtor, the bank as surety, and the beneficiary as creditor. Section 126 of the Indian Contract Act, 1872 identifies these three roles in a contract of guarantee.
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Maharashtra and Goa SET (MH SET)