INDEMNITY AND GUARANTEES
QUESTION 1
December 2023 Question Six B
In relation to contracts of guarantee, a surety is said to be discharged when his liability comes to an end.
State FIVE circumstances that may lead to the liability of a surety coming to an end.
(5 marks)
QUESTION 2
August 2023 Question Four C
Examine FOUR distinctions between an indemnity contract and a contract of guarantee.
(8 marks)
QUESTION 3
April 2023 Question Seven C
With reference to contract of guarantee, outline FIVE rights of a guarantor against a creditor. (5 marks)
QUESTION 4
August 2022 Question Seven C
Describe three types of guarantee. (6 marks)
QUESTION 5
April 2022 Question Three B
Outline four ways in which a surety might be discharged from a contract of guarantee.
(4 marks)
QUESTION 6
December 2021 Question Six B
Outline four advantages of letters of credit. (4 marks)
QUESTION 7
December 2021 Question Seven A
Identify the four parties in creation of a letter of credit and their roles (4 marks)
QUESTION 8
December 2021 Question Seven D
Define the following types of guarantees:
(i) Tender guarantees. (2 marks)
(ii) Performance guarantees. (2 marks)
(iii) Warranty guarantees. (2 marks)
QUESTION 9
December 2021 Pilot Paper Question Three C
Outline briefly the obligations of a surety under the contract of guarantee. (5 marks)
QUESTION 10
May 2021 Question Six B
Outline six advantages of a contract of guarantee. (6 marks)
QUESTION 11
November 2020 Question Six B
- Distinguish between a “contract of indemnity” and a “contract of guarantee”.
(4 marks)
- Outline four remedies for breach of the contract of indemnity. (4 marks)
QUESTION 12
November 2019 Question Three B
Explain three characteristics of the contract of guarantee. (6 marks)
QUESTION 13
November 2018 Question Four C
Outline four ways in which a surety might be discharged front a contract of guarantee.
(4 marks)
QUESTION 14
May 2018 Question Four A and B
- Enumerate four rights of an indemnity holder in a contract of indemnity. (4 marks)
- State six circumstances under which a contract of guarantee might be declared void.
(6 marks)
QUESTION 15
May 2017 Question Seven B
Explain two instances when the guarantor will not be held liable on the principal debt.
(4 marks)
QUESTION 16
May 2016 Question Three C
Identify three types of rights that a surety could enforce against a creditor in a contract of guarantee. (6 marks)
QUESTION 17
November 2015 Question Five C
Discuss four circumstances under which a guarantor would be discharged. (8 marks)
