Multiple choice

Which among the following is incorrect with respect to a contract of guarantee?

  1. A liability which is incurred independently of a ‘default’ is not within the scope of guarantee.

  2. The existence of a recoverable debt is necessary.

  3. A guarantee without consideration is not void.

  4. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

(3) In every contract there must be an offer containing a promise and every promise must have a consideration which is accepted or agreed upon.

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