(CLAT) Common Law Admission Test Practice Test

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CLAT Legal Reasoning & Aptitude 5

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Principle: A contract of guarantee is a contract to perform the promise or discharge the liability of a third person in case of his default. Fact: Bank lends โ‚น5 lakh to Rohit; his friend Sunil guarantees the loan. Rohit defaults. The bank sues Sunil directly without first suing Rohit.
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