New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    The person to whom a guarantee is given in a contract

    of guarantee is known as the ______________
    A Surety Correct Answer Incorrect Answer
    B Creditor Correct Answer Incorrect Answer
    C Debtor Correct Answer Incorrect Answer
    D Guarantor Correct Answer Incorrect Answer
    E Third Party Correct Answer Incorrect Answer

    Solution

    Section 126.   "Contract of guarantee", "surety", "principal debtor" and "creditor"- A "contract of guarantee" is a contract to perform the promise, or discharge the liability, of a third person in case of his default. The person who gives the guarantee is called the "surety"; the person in respect of whose default the guarantee is given is called the "principal debtor", and the person to whom the guarantee is given is called the "creditor". A guarantee may be either oral or written

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