Question

What is the consideration to enforce a contract of guarantee against the surety?

• A. Consideration is not necessary in contract of guarantee
• B. All existing and collateral securities in hands of the creditor against the principal debtor are sufficient consideration to the surety for giving the guarantee
• C. All collateral securities are sufficient consideration to the surety for giving the guarantee
• D. Anything done, or any promise made, for the benefit of the principal debtor, may be a sufficient consideration to the surety for giving the guarantee

Answer 1

The Correct Option is D

In a contract of guarantee, the consideration for the surety is typically anything done or promised for the benefit of the principal debtor. This is sufficient to make the guarantee enforceable.