LLB Varun

“Contract of indemnity” defined.— A contract by which one party promises to save the other from loss caused to him by the conduct of the promisor himself, or by the conduct of any other person,… 

Rights of indemnity-holder when sued.— The promisee in a contract of indemnity, acting within the scope of his authority, is entitled to recover from the promisor— (1) all damages which he may be compelled to… 

“Contract of guarantee”, “surety”, “principal debtor” and “creditor”.— A “contract of guarantee” is a contract to perform the promise, or discharge the liability, of a third person in case of his default. The person who… 

Consideration for guarantee.— Anything done, or any promise made, for the benefit of the principal debtor, may be a sufficient consideration to the surety for giving the guarantee. Illustrations (a) B requests A to sell… 

Surety’s liability.— The liability of the surety is co- extensive with that of the principal debtor, unless it is otherwise provided by the contract. Illustration A guarantees to B the payment of a bill of… 

“Continuing guarantee”.— A guarantee which extends to a series of transactions, is called a “continuing guarantee”. Illustrations (a) A, in consideration that B will employ C in collecting the rent of B’s zamindari, promises B… 

Revocation of continuing guarantee.— A continuing guarantee may at any time be revoked by the surety, as to future transactions, by notice to the creditor. Illustrations (a) A, in consideration of B’s discounting, at A’s… 

Revocation of continuing guarantee by surety’s death.— The death of the surety operates, in the absence of any contract to the contrary, as a revocation of a continuing guarantee, so far as regards future transactions.

Liability of two persons, primarily liable, not affected by arrangement between them that one shall be surety on other’s default.— Where two persons contract with a third person to undertake a certain liability, and also…