Question

A guarantee which is obtained by way of misrepresentation or concealment is__________

A Valid Correct Answer Incorrect Answer
B Invalid Correct Answer Incorrect Answer
C Illegal Correct Answer Incorrect Answer
D Unenforceable Correct Answer Incorrect Answer

Solution

Contract Act- Section 142. Guarantee obtained by misrepresentation invalid—Any guarantee which has been obtained by means of misrepresentation made by the creditor, or with his knowledge and assent, concerning a material part of the transaction, is invalid. Section 143. Guarantee obtained by concealment invalid—Any guarantee which the creditor has obtained by means of keeping silence as to material circumstances, is invalid.

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