Distinction between Contract of Indemnity and Contract of Guarantee
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Contract of Indemnity |
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Contract of Guarantee |
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| 1 | There are two parties, namely Indemnifier and the Indemnified. | There are three parties, viz the principal debtor, the creditor and the surety | |
| 2 | The liability of the Indemnifier is primary | The liability of the surety is subsidiary | |
| 3 | The liability of the Indemnifier is contingent | The liability of the surety is subsisting | |
| 4 | The Indemnifier cannot sue the third party in his name even after making good the loss unless there is an assignment in his favour from the indemnified. | The surety can sue the principal debtor in his own name after paying the creditor |
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