2 thoughts on “explain the difference between contact of indemnity and contract of guarantee”
Answer:
Liability: In a contract of indemnity, the liability of the indemnifier is primary (Fire Insurance), whereas in a contract of guarantee, the debtor is primarily liable, and the surety assumes secondary liability because the customer is primary liable in default of his payment then after the surety has liability.
Contract of indemnity protects the promise from loss. Contract of guarantee is for the surety of the creditor. In Contract if indemnity, the promisor cannot file the suit against third person until and unless the promisee relinquishes his right in favour of the promisor.
Explanation:
In a contract of indemnity, the liability of the indemnifier is primary (Fire Insurance), whereas in a contract of guarantee, the debtor is primarily liable, and the surety assumes secondary liability because the customer is primary liable in default of his payment then after the surety has liability.
Answer:
Liability: In a contract of indemnity, the liability of the indemnifier is primary (Fire Insurance), whereas in a contract of guarantee, the debtor is primarily liable, and the surety assumes secondary liability because the customer is primary liable in default of his payment then after the surety has liability.
Answer:
Contract of indemnity protects the promise from loss. Contract of guarantee is for the surety of the creditor. In Contract if indemnity, the promisor cannot file the suit against third person until and unless the promisee relinquishes his right in favour of the promisor.
Explanation:
In a contract of indemnity, the liability of the indemnifier is primary (Fire Insurance), whereas in a contract of guarantee, the debtor is primarily liable, and the surety assumes secondary liability because the customer is primary liable in default of his payment then after the surety has liability.