Multiple choice

In case of a contract of guarantee

  1. there is only one contract

  2. there are two contracts

  3. there are three contracts

  4. there are actually only agreements and no contracts
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A contract of guarantee involves three distinct contracts: the principal contract between creditor and principal debtor, the contract of guarantee between surety and creditor, and the indemnity contract between surety and principal debtor. Each party has separate rights and obligations under these three agreements.

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