The Indian Contract Act

"Contract of indemnity" define

Rights of indemnity-holder when sued

"Contract of guarantee", "surety", "principal debtor" and "creditor"

Consideration for guarantee

Surety's liability

"Continuing guarantee"

Revocation of continuing guarantee

Revocation of continuing guarantee by surety's death

Liability of two persons, primarily liable, not affected by arrangement between them that one shall be surety on others default

Discharge of surety by variance in terms of contract

Discharge of surety by release or discharge of principal debtor

Discharge of surety when creditor compounds with, gives time to, or agrees not to sue, principal debtor

Surety not discharged when agreement made with third person to give time to principal debtor

Creditor's forbearance to sue does not discharge surety

Release of one co-surety does not discharge others

Discharge of surety of creditor's act or omission impairing surety's eventual remedy

Rights of surety on payment or performance

Surety's right to benefit of creditor's securities

Guarantee obtained by misrepresentation invalid

Guarantee obtained by concealment invalid

Guarantee on contract that creditor shall not act on it until co-surety joins

Implied promise to indemnify surety

Co-sureties liable to contribute equally

Liability of co-sureties bound in different sums


OF INDEMNITY AND GUARANTEE


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.


LAWGIST

# 126 "Contract of guarantee", "surety", "principal debtor" and "creditor"