Question

: Explain in detail the concepts of Indemnity and Guarantee.Explain the main areas where these concepts vary from each other. Use examples in the right context.

Answer 1

Answer

Indemnity : It is a contract where one party promise to compensate to another party for the losses.

Guarntee : One party promise to discharge the libality of third person in case of default.  

Areas where vary with Each other

s.no	contract of Indeminity	Contract of Guarntee
1	In this there are two types the indimifes and indiminifed	Three parties in contract pricipal debtor surety creditor
2	Primary lability is indiminifier	The Principal lability is one of the
3	contract between indiminifer and indiminified	contract between principal debtor And Creditors,pricipal debtor -surety, principal Creditors -surey

Example: A sells and deliver goods to B . C Afterwards requests A to forbear to sue B for bebt for a year, and promise he can do so . c will pay them in default of B. A Agrees to for bear for Request . This is sufficent considration of B .