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Guarantee

Corporate & Other Laws

The surety must be competent to contract. The debtor need not be competent. What about the Creditor? Does he need to be competent?


Aman Mahajan

Aman Mahajan

CA Final

19K+

26-Jan-21 17:46

275

Answers (4)

Best Answer

Simple, the guarantee contract is between creditor and surety....so to become a valid contract , parties entering into contract should be competent. Debtor need not be competent.


Star Ca

Star Ca

CA Inter

3K+

23-Feb-21 22:42

Nothing on creditor has been mentioned


Venkateshwara Prabhu

Venkateshwara Prabhu

CA Inter

16K+

26-Jan-21 19:42

Venkateshwara Prabhu

Nothing on creditor has been mentioned

?


Thread Starter

Aman Mahajan

Aman Mahajan

CA Final

19K+

26-Jan-21 20:36

Yes, creditor and surety both needs to be competent


Sahibdeep Singh

Sahibdeep Singh

CA Inter

14K+

27-Jan-21 10:23

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