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Indemnity and Guarantees

Unit: Introduction to Law and Governance

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Practice CPA Introduction to Law and Governance Indemnity and Guarantees questions with detailed answers and explanations.

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December 2025

 1 Questions
Question 3
​​(a) In relation to the law of partnerships, explain the following liabilities: 
(i) The liability of retiring partners.  
(ii) The liability of incoming partners.   
(iii) The liability of minors as partners. 
 
(b) Examine FOUR elements of a contract of sale of goods.  
 
(c) Evaluate FIVE differences between a “contract of indemnity” and a “contract of guarantee”. 


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August 2025

 1 Questions
Question 5a
​ ​​Explain FIVE rights of a surety in a contract of guarantee.


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April 2025

 1 Questions
Question 5b
​​Summarise SIX circumstances which might render a contract of guarantee void.


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December 2024

 1 Questions
Question 4d
​​Discuss THREE defenses available to a surety under a contract of guarantee.


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December 2023

 1 Questions
Question 6b
​​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.


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August 2023

 1 Questions
Question 4c
​​Examine FOUR distinctions between an indemnity contract and a contract of guarantee.


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April 2023

 1 Questions
Question 7c
​​With reference to contract of guarantee, outline FIVE rights of a guarantor against a creditor.


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August 2022

 1 Questions
Question 7c
​​Describe three types of guarantee.


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April 2022

 1 Questions
Question 3b
​​Outline four ways in which a surety might be discharged from a contract of guarantee.


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Pilot December 2021

 1 Questions
Question 3c
​ Outline briefly the obligations of a surety under the contract of guarantee


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December 2021

 3 Questions
Question 6b
​​Outline four advantages of letters of credit.


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Question 7d
​​Define the following types of guarantees:

(i) Tender guarantees.

(ii) Performance guarantees.

(iii) Warranty guarantees


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Question 7a
​​Identify the four parties in creation of a letter of credit and their roles.


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May 2021

 1 Questions
Question 6b
​​Outline six advantages of a contract of guarantee.


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November 2020

 1 Questions
Question 6b
(i) Distinguish between a "contract of indemnity" and a "contract of guarantee". 

(ii) Outline four remedies for breach of the contract of indemnity.


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November 2019

 1 Questions
Question 3b
​​ Explain three characteristics of the contract of guarantee.


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May 2019

 1 Questions
Question 6c
​​Summarise three rights that the guarantor has against the principal debtor.


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November 2018

 1 Questions
Question 4c
​​Outline four ways in which a surety might be discharged from a contract of guarantee.


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May 2018

 2 Questions
Question 4a
​​Enumerate four rights of an indemnity holder in a contract of indemnity.


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Question 4b
​​State six circumstances under which a contract of guarantee might be declared void.


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May 2017

 1 Questions
Question 7b
​​Explain two instances when the guarantor will not be held liable on the principal debt.


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May 2016

 1 Questions
Question 3c
​​Identify three types of rights that a surety could enforce against a creditor in a contract of guarantee


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November 2015

 1 Questions
Question 5c
​​Discuss four circumstances under which a guarantor would be discharged.


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Pilot September 2015

 1 Questions
Question 2c
​​State three rights available to a person who agrees to be answerable for the, default or miscarriage of another party.


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