Question

Given below are two 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 from the options given below:

• A. Both Statement I and Statement II are correct
• B. Both statement I and Statement II incorrect
• C. Statement I is correct but Statement II is incorrect
• D. Statement I is incorrect but Statement II is correct

Answer 1

Answer: (B)

Both statement I and Statement II incorrect

Answer 2

The correct answer is (B) : Both statement I and Statement II incorrect.