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Section 126 - Contract of guarantee surety principal debtor and creditor : Indian Contract Act 1872

What is Contract of guarantee surety principal debtor and creditor? Section 126 of Indian Contract Act 1872


 

Section 126 of Indian Contract Act 1872 : "Contract of guarantee surety principal debtor and creditor"

126. 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 gives the guarantee is called the "surety"; the person in respect of whose default the guarantee is given is called the "principal debtor", and the person to whom the guarantee is given is called the "creditor". A guarantee may be either oral or written.

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