Unit-7 *Essential features of Guarantee 3. Existence of a liability nhi samjha

Manish · 2 May 2024

Existence of liability:- IN contract of guarantee principal liability in primary in nature, in case of non performence of contract by principal there must be existence of liability of guarantor which was secondry and unconditional in nature

Deepak · 2 May 2024

It means that a guarantee contract include perform promise to made or discharge liability then it said that existence of liability

Bhavya · 2 May 2024

I think if time barred debt is valid so on the other hand in such contracts of guarantee like the payment of debt will be continuing subsequently

Anas · 2 May 2024

In the context of the CA Foundation course, guarantees refer to agreements where one party promises to fulfill the obligations of another party if they fail to do so. Essential features of guarantees typically include: 1. **Parties Involved:** Identification of the guarantor (who provides the guarantee), the principal debtor (whose obligations are being guaranteed), and the beneficiary (the party who benefits from the guarantee). 2. **Promise to Pay:** The guarantor promises to fulfill the obligations of the principal debtor if they default. 3. **Consideration:** There must be some form of consideration exchanged between the guarantor and the beneficiary. This could be monetary or non-monetary. 4. **Communication:** The guarantee must be communicated and accepted by all parties involved. 5. **Lawful Obligations:** The obligations being guaranteed must be lawful. 6. **In Writing:** In many jurisdictions, guarantees must be in writing to be enforceable, especially for significant amounts or long durations. Understanding these essential features is crucial for CA Foundation students studying topics related to guarantees and contracts.