Indian Contract Act : "Contract of guarantee", "surety", principal debtor" and"creditor" Indian Bare Acts :

Indian Contract Act,1872

Act No : 9

Section : "Contract of guarantee", "surety", principal debtor" and"creditor"

126."Contract of guarantee", "surety", principal debtor" and"creditor".-A "contract of guarantee " is a contract to perform thepromise, or discharge the liability, of a third person in case of hisdefault. The person who gives the guarantee is called the " surety";the person in respect of whose default the guarantee is given iscalled the " principal debtor ", and the person to whom the guaranteeis given is called the " creditor ". A guarantee may be either oralor written.