Contract of indemnity | Rights of indemnity holder | Rights of indemnifier | Indian contract act |
• Contract of indemnity ...
A contract of guarantee is a legal agreement where one party (the guarantor) promises to be responsible for fulfilling the obligations of another party (the principal debtor) in case the debtor fails to do so. In simpler terms, it is a promise made by a third party to pay or perform the debt or duty of another person if that person cannot or does not fulfill their obligations.
In this video also explain types of guarantee :
There are two main types of contracts of guarantee:
1.Specific Guarantee: In a specific guarantee, the guarantor's liability is limited to a specific transaction or a particular debt. The guarantee is valid only for that specific obligation, and it does not extend to any other future transactions or debts between the creditor and debtor.
2.Continuing Guarantee: A continuing guarantee, also known as a continuing or open-ended guarantee, covers a series of transactions or a continuous business relationship between the creditor and debtor. Unlike a specific guarantee, the liability of the guarantor under a continuing guarantee remains in force until it is revoked by the guarantor, or until the creditor receives a notice of revocation.
And also explained features of contract of guarantee.
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