Any guarantee which the creditor has obtained by means of keeping silence as to material circumstanc...........

Indian Contract Act (ICA)1872 indemnity and guarantee

Download Solution PDF

Any guarantee which the creditor has obtained by means of keeping silence as to material circumstances is:

valid

considered to be his approval

invalid

considered to be his denial

छोटे Courses बड़े Results

Master indemnity and guarantee

Prepare through Micro-courses

Try Now

Explanation:

- Option 1: Valid

A guarantee obtained through silence may still be legally binding if the silent party had a duty to disclose information and violated it. Otherwise, the silence might not invalidate the guarantee.

- Option 2: Considered to be his approval

Silence could imply consent or approval if the party's silence misled the creditor, especially when there was an expectation of disclosure.

- Option 3: Invalid

Generally, not disclosing material circumstances that one party should reveal can invalidate a guarantee because it's not based on informed consent.

- Option 4: Considered to be his denial

Silence is rarely interpreted as denial because it could be applied misleadingly and doesn't align with common interpretations unless explicitly stated.