Custom Search

Translate

Wednesday, 10 August 2011

Write a note on Contract of Guarantee or Contract of Surety or Accessory Contract





Contract of Guarantee :-
It is defined in the following words, "A contract of guarantee is a contract to perform the promise or discharge the liability of the third person in cause of default.


1. Surety.

2. Creditor.

3. Principal Debtor.


Example :- Mr. Bean takes a loan of Rs. 10,000 from City Bank, and Mr. Riz gives guarantee of repayment of loan. Here Mr. Bean is the principal debtor. City Bank is creditor and Mr. Riz is a surety.

Consideration Case :-
"Anything done, or any promise made for the benefit of the principal debtor may be sufficient consideration to the surety for giving the guarantee."

1 comments:

Post a Comment

Google+ Followers

Best Song of the Year Baar Baar by Fysul Mirza

  © Blogger template Blue Surfing by Trade Cycle 2014

Back to TOP