Question

In contract there are 3 parties namely the principal debtors, creditor and
surety
a) Indemnity b) Guarantee c) Contingent d) Legal​

Answer 1

Answer:

The correct answer to this question is a Guarantee.

Explanation:

Given - 3 parties namely the principal debtors, creditor, and surety.

To Find - Choose the correct option.

A Guarantee is a contract there are 3 parties namely the principal debtors, the creditor, and surety.

A contract of guarantee has three parties: the surety, the major debtor, and the creditor, whereas a contract of indemnification only has two parties: the promisor and the promisee.

In a contract of indemnification, the promisor's liability is first and foremost; in a contract of guarantee, the surety's obligation is secondary.

In a contract of guarantee, surety only offers assurance when the principal debtor requests it. In an indemnity agreement, the indemnifier is not obligated to take action at the debtor's request.

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