0
0
Answer Now
Comment
Report
2
Answers
A โcontract of guaranteeโ is 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 the โsuretyโ; the person in respect of whose default the guarantee is given is called the โprincipal debtorโ; and the person to whom the guarantee is given is called the โcreditorโ. A guarantee may be either oral or written. (Section 126 of the Indian Contract Act, 1872) A guarantee which extends to a series of transactions is called a โcontinuing guaranteeโ.
Important Note โ Preparing for CA Final?
CAKART provides Indias top faculty each subject video classes and lectures โ online & in Pen Drive/ DVD โ at very cost effective rates. Get video classes from CAKART.in. Quality is much better than local tuition, so results are much better.
Watch Sample Video Now by clicking on the link(s) below โ
For any questions Request A Call Back
**COUNTER GUARANTEE FIDELITY GUARANTEE PERFORMANCE GUARANTEE**
A โcontract of guaranteeโ is 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 the โsuretyโ; the person in respect of whose default
the guarantee is given is called the โprincipal debtorโ; and the person to whom the guarantee is given is called
the โcreditorโ. A guarantee may be either oral or written. (Section 126 of the Indian Contract Act, 1872)
A guarantee which extends to a series of transactions is called a โcontinuing guaranteeโ.
A guarantee, guaranteeing an employer against the misconduct of an employee or to answer for the debt or
default of another, is called a โfidelity guaranteeโ.
A guarantee given by the principal debtor to the surety providing him continuing indemnity against any loss or
damage that the surety may suffer on account of default on the part of the principal debtor, is called โcounterguaranteeโ.
A guarantee which ensures the contracted performance of another person and under which the surety undertakes
to compensate the person in whose favour the guarantee is given, in the event of failure on the part of the
person on whose behalf the guarantee is given, is known as โperformance guaranteeโ.
Thanks