Distinguish between Contract of Indemnity and Contract of
guarantee.

Answer Posted / puja

CONTRACT OF INDEMNITY

1 There are two parties
to the contract viz.
the indemnifier and the
indemnified


2 The liability of the
indemnifier to the
indemnifed is primary


CONTRACT OF GUARANTEE

1 There are three parties
to the contract viz. the
creditor, the principal
debtor and the surety.

2 The liability of the
surety to the creditor
is collateral or secondary
the primary liability being
that of the principal debtor

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