CMA Foundation MCQ – Indemnity Guarantee, Pledge, AgentOctober 31, 2025 Maven Leave a Comment Welcome to your CMA Foundation MCQ - Indemnity Guarantee, Pledge, Agent Name Email 1. When an agent exceeds his authority and the act cannot be separated, the principal is ________. Fully bound Partly bound Not bound Obliged to ratify None 2. The right of the surety to recover from the debtor all amounts paid is called the right of ________. Indemnity Retention Contribution Subrogation None 3. Which of the following is an example of implied agency? Power of attorney Written agreement Employment contract Agency by estoppel None 4. In a pledge, the ownership of goods remains with the ________. Pawnee Creditor Surety Pawnor None 5. In a contract of guarantee, how many parties are involved? Two Three Four One None 6. In which case can a non-owner make a valid pledge? By Mercantile Agent By Finder of Goods By Debtor By Surety None 7. A contract of indemnity is defined under which section of the Indian Contract Act, 1872? Section 122 Section 124 Section 126 Section 128 None 8. Which of the following is NOT a party to a contract of guarantee? Surety Creditor Principal Debtor Indemnifier None 9. When an agent acts within his authority, the acts are binding on the ________. Third Party Creditor Principal Surety None 10. The liability of a surety is said to be ________. Primary Conditional Secondary Absolute None 11. The pawnee can sell the pledged goods after giving ________. 15 days’ notice Reasonable notice Written consent Oral permission None 12. Which of the following contracts involves two parties only? Contract of Guarantee Contract of Indemnity Contract of Pledge Contract of Agency None 13. The surety’s liability is discharged if the creditor ________. Varies the contract terms Demands repayment Pays interest Files a case None 14. If a sub-agent is properly appointed, the principal is ________. Not bound by his acts Responsible for his acts as if he were an agent Free from all liabilities Liable only to the original agent None 15. A contract of agency can be created without ________. Consent Writing Consideration Agreement None Time's upRelated Posts:CMA Foundation MCQ - Sources of LawCMA Foundation MCQ - Legislative Process in IndiaCMA Foundation MCQ - Legal Method and Court System in IndiaCMA Foundation MCQ - Elements of a Contract
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