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      Question

      What constitutes sufficient consideration for a

      guarantee?
      A A promise made for the benefit of the principal debtor Correct Answer Incorrect Answer
      B A promise made for the benefit of the surety only Correct Answer Incorrect Answer
      C Any promise or act performed for the benefit of the lender Correct Answer Incorrect Answer
      D A promise made by the principal debtor to the creditor Correct Answer Incorrect Answer
      E A promise made by the principal debtor to the surety Correct Answer Incorrect Answer

      Solution

      Explanation:Contract ActSection 127.   Consideration for guarantee: 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.

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