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