Interested to Buy Any Domain ? << Click Here >> for more details...
Distinguish between Contract of Indemnity and Contract of
guarantee.
- 8 Answers
- 41448 Views
- I also Faced
- E-Mail Answers
Answer Posted / avik ghosh
CONTRACT OF INDEMNITY
1)Section 124 of the Indian Contract Act 1872 defines a
"contract of indemnity" as a contract by which one party
promises to save the other from loss caused to him by the
conduct of the Promisor himself, or by the conduct of any
other person.
e.g = 'x' contracts to indemnify 'y' against the
consequences of any legal proceedings which c
may take against B in respect of a certain sum of
Rs.200/=.
2 There are two parties
to the contract viz.
the indemnifier and the
indemnity holder
3 The liability of the
indemnifier is primary
4 In the Contract of indemnity the liability of the
indemnifier arises only on the happening of the contingency.
5 In the contract of indemnity the loss falls on the
indemnifier except in certain special cases.
6 There is only one contract in case of contract of
indemnity i.e, b/w the indemnifier and indemnity holder.
CONTRACT OF GUARANTEE
1 Section 126 of the Indian Contract Act 1872 defines a
contract of guarantee is a contract to perform the promise
or discharge the liability of a third person in case of his
default”. The person who gives the guarantee is called the
“surety”; the person in respect of whose default the
guarantee is given is called the “principal debtor”, and the
person to whom the guarantee is given is called the
“creditor”.A guarantee may be either oral or written.
e.g, 'P' lends Rs. 5000/= to 'Q' and 'R' promises to 'P'
that if 'Q' does not pay the money back then 'R' will do so.
2 There are three parties
to the contract viz. the
creditor, the principal
debtor and the surety.
3 The liability of the
surety to the creditor
is secondary i.e, the surety is
liable only if the principal debtor
fails to perform his obligation.
4 In a contract of guarantee there is an existing debts or
duty, the performance of which is guaranteed by the surety.
5 In the contract of guarantee the surety , after discharges
the debts owing to the creditor, can proceed against the
principal debtor.
6 In case of contract of guarantee there are three contracts.
a) contract b/w the principal debtor and the creditor.
b) contract b/w the creditor and the surety.
c) contract b/w the surety and the principal debtor.
| Is This Answer Correct ? | 24 Yes | 4 No |
Post New Answer View All Answers
A invites B to a dinner party. B accepts the invitation. A made elaborate arrangements but B failed to
State the circumstances where Licence is not required?
How much do you get paid in a year?
optimal mindset
the sun which is largest source of heat energy gets its energy by the process of what 1)nuclear fission 2)nuclear fusion 3)nuclear chain reaction 4)all of these
What do you understand by the rule of law?
describe any three types of road in india
Why do ask we about child labour? why sould not we ask about child basic development? when we have education cess, why the amount not been ment for the development of child labour? when we have a system to eradicate child labour? Why that force is not child thier to put them in kind of bostal school? why the parent should not be punished for the child labour
Dear Friends, Please send me State Bank of Maharashtra or other banks - LAW OFFICER's Exam Questions Papers for the past five years. I will be highly obliged. neerajgoyal155@yahoo.com
Would you be able to do time-recording?
If my friend locks me in a room, and says I am free to come out whenever I like as long as I pay £5, is this a deprivation of liberty?
Who has the power to write and change laws?
If A gave B £100 thinking it was a loan and B accepted the money thinking it was a gift, should he have to give it back?
i was born on 7th may 1990... i'm from andhra pradesh do i have the right to vote in the coming april elections?? what is the cut off date this time???
What is the difference between TDS & Service Tax?
