Multiple choice

In which of the following is consideration not required?

  1. Contract of insurance

  2. Contract of bailment

  3. Contract of guarantee

  4. Contract of service
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Option (3) is correct: Anything done, or any promise made, for the benefit of principal debtor may be a sufficient consideration to the surety for giving the guarantee. So in a contract of guarantee, a consideration is not required separately.

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