Question

Discuss the follow Consideration is must in a
Contract of Garantee ?wheather its true or not
Define and Example !​

Answer 1

Answer:

A contract without consideration is void because it is not legally enforceable. "Consideration" means that each party must provide something of value to the other party as designated by the contract terms.

126 of the Indian Contract Act 1872, which deals with the contract of guarantee, has defined it as “A contract to perform the promise, or discharge the liability of a third person in case of his defaults”. Example: A advances a loan of Rs. ... Surety, who gives the guarantee.

An exception to this rule is where there is a duty owed to a third party. An act done before the giving of a promise to make a payment or to confer some other benefit can sometimes be consideration for the promise.

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Answer 2

Answer:

Thus here we can infer that there the 3 parties to the contract

Principal Debtor – The one who borrows or is liable to pay and on whose default the guarantee is given

Creditor – The party who has given something of value to borrow and stands to receive the payment for such a thing and to whom the guarantee is given

Surety/Guarantor – The person who gives the guarantee to pay in case of default of the principal debtor

Also, we can understand that a contract of guarantee is a secondary contract that emerges from a primary contract between the creditor and the principal debtor.