Section 126 Indian Contract Act 1872
Section 126 of the Indian Contract Act 1872 is about “Contract of guarantee”, “surety”, “principal debtor” and “creditor”. It is under CHAPTER VIII of the Act. CHAPTER VIII is titled OF INDEMNITY AND GUARANTEE.
“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 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.
See also:
Section 125 Indian Contract Act 1872 (Rights of indemnity-holder when sued)
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