QUESTIONS

1. Guarantee contract occurs when one person signifies to perform the contract or discharge the

liability incurred to the third party, on behalf of the second party, in case he fails. According

to so, state the types of guarantee.

2. The person to whom the guarantee is given is Creditor, Principal Debtor is the person on

whose default the guarantee is given and the person who gives guarantee is Surety

(Guarantor). Therefore, list ways of discharge of guarantor.

3. In a guarantee contract there are several parties with duties and responsibilities that should be

abided by and upheld. Thus, discuss the rights of an indemnity holder acting within scope of

his authority.

4. A guarantee contract is a contract when one person(guarantor) signifies that he will be held

liable if the principal debtor fails to pay the creditors. According to this statement, list the

rights against principal debtor.

5. A guarantee contract has played an important role in commercial law thus has so many

contributory aspects. With so, list the advantages of a guarantee contract.

6. A guarantee contract when faced with some difficulties there will be situations where

surety's secondary liability comes to an end. Therefore, discuss the vitiating factors or ways

of discharge by invalidation of guarantee contract.

7. However, the partners may on their own accord reduce the basis of their relationship into a

formal document detailing the terms and the condition of the association. The document is

the Partnership Deed or Agreement or Articles of Partnership thus list the contents of a

partnership deed.

8. Non-registration of a partnership form of business organization may be faced with some

consequences since it is against the law. In addition to so, list the tights of a firm not affected

with non-registration.

9. The interests of partners in the partnership property and their rights and duties in relation to

the partnership shall be determined, subject to any agreement express or implied between the

partners. Discuss the rules as to interests and duties of partners.

10. A partnership deed plays an important role as it contains rules and rights that govern the

partners and should be abided by. With reference to a partnership deed, list the rules

applicable in absence of partnership deed.