Question:
What is the consideration to enforce a contract of guarantee against the surety?
What is the consideration to enforce a contract of guarantee against the surety?
Updated On: Dec 10, 2024
- Consideration is not necessary in contract of guarantee
- All existing and collateral securities in hands of the creditor against the principal debtor are sufficient consideration to the surety for giving the guarantee
- All collateral securities are sufficient consideration to the surety for giving the guarantee
- 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
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The Correct Option is D
Solution and Explanation
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.
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