Contract of Guarantee important topic for CS Professionals

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An interesting topic from Drafting – ‘Guarantees’ is discussed below:

Guarantees

Contract of Guarantee

A “contract of Guarantee” is a contract to perform the promise, or discharge the liability, of a third person in case of his default. A Guarantee may be either oral or written.

Parties involved in the Contract

Surety: The person who gives the guarantee is called the “surety”.

Principal debtor: The person in respect of whose default the guarantee is given is called the “principal debtor”

Creditor: The person to whom the guarantee is given is called the “creditor”.

Read complete Contract of Guarantee here..

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