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      Question

      A surety is entitled to be indemnified by the principal

      debtor__________
      A In respect of sums wrongfully paid Correct Answer Incorrect Answer
      B In respect of sums rightfully paid Correct Answer Incorrect Answer
      C In respect of sums paid rightfully of wrongfully Correct Answer Incorrect Answer
      D All the above Correct Answer Incorrect Answer

      Solution

      Section 145 In a contract of guarantee, when the principal debtor makes a default, the surety has to make payment to the creditor. This payment is made by the payment to the creditor. This payment is made by him on behalf of the principal debtor. After making such payment, he can recover the same from the principal debtor. Such a claim can be made by the surety only in respect of the sums he has rightfully paid under the guarantee, but not the sums which he has paid wrongfully.

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