Question

The concept of invalid guarantee is covered under Sections .........

• A. 143–147
• B. 140–143
• C. 142–146
• D. 142–144

Hint:

A guarantee becomes invalid if obtained by fraud, concealment, or conditional terms that remain unfulfilled as per Sections 142–144 of the Indian Contract Act, 1872.

Answer 1

The Correct Option is D

Step 1: Understanding the concept of guarantee.
A “contract of guarantee” is defined under Section 126 of the Indian Contract Act, 1872. It involves three parties — the creditor, principal debtor, and surety. A guarantee becomes invalid if certain conditions under Sections 142 to 146 are violated.
Step 2: Relevant sections.
- Section 142: Guarantee obtained by misrepresentation invalid.
- Section 143: Guarantee obtained by concealment invalid.
- Section 144: Guarantee conditional to co-surety’s signing is invalid if the condition is not met.
- Sections 145–146: Define the rights of surety after invalidation or discharge.
Step 3: Conclusion.
Thus, the concept of invalid guarantee is covered under Sections 142–144 of the Indian Contract Act, 1872.