Multiple choice

In case of a contract of guarantee

  1. there are two parties to the contract

  2. there are three parties to the contract

  3. there should be at least two parties to the contract

  4. there should be at least five parties to the contract
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A guarantee contract involves three distinct parties: the creditor who is to receive payment, the principal debtor who is primarily liable, and the surety who promises to pay if the principal debtor defaults.

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