Question

Under which section of the contract act defines a contract of guarantee as: a contract to perform the promise, or discharge the liability of a third person in case of his default?

Answer 1

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Section 126 of Indian Contract Act defines Contract of guarantee. It defines a contract of guarantees a contract to perform the promise or discharge the liability of a third person in case of his default. The person who gives the guarantee is called “surety”.

Answer 2

Explanation:

Section 126 of Indian Contract Act defines Contract of guarantee. It defines a contract of guarantees a contract to perform the promise or discharge the liability of a third person in case of his default. The person who gives the guarantee is called “surety”.