Accounting · Business Law
Consider the following statements: Statement I: A contract by which one party promises to save the other from loss caused to him by the conduct of the promisor himself, or by the conduct of any other person, is called a contract of Guarantee. Statement II: A contract to perform the promise, or discharge the liability of a third person in case of his default, is called a contract of Indemnity. In the light of the above statements, choose the most appropriate answer:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Both Statement I and Statement II are correct
- 2Both Statement I and Statement II are incorrect✓
- 3Statement I is correct but Statement II is incorrect
- 4Statement I is incorrect but Statement II is correct
Correct answer
Both Statement I and Statement II are incorrect
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