Multiple choice

Mark the correct answer in respect of Contract of Guarantee.

  1. It may be in writing.

  2. It may be oral.

  3. Both (1) and (2)

  4. Neither (1) nor (2)

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A contract of guarantee can be formed either orally or in writing under Indian contract law. There is no legal requirement for a guarantee to be in writing to be valid, though written documentation is practically advisable for evidentiary purposes. Both modes of formation are legally recognized and enforceable.