Question

What is the contract of ‘guarantee’?

Answer 1

$\huge{\boxed{\boxed{\mathfrak{\pink{Answer}}}}}$

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”. The person of whose default the guarantee is given is called the “Principal debtor”.

Answer 2

Explanation:

It means a contract to performes promises made or discharge the liabilities to third person case in of his failure to discharge such liabilities. It is governed by Indian contract, 1872 and includes three parties.