Difference between indemnity & guarantee
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
16 November 2011
what is the difference between indemnity & guarantee? plz do clear in depth thru examples rather than definition...
21 November 2011
There are two parties in indemnity, but in guarantee, there are three parties.
Liability of promisor is primary in case of indemnity, in guarantee liability is secondary.
In guarantee, there is existing debt, but in indemnity there is possibility of future loss.
Example of indemnity - Pure Insurance
Example of Guarantee - Bank gives Loan to company upon personal guarantee of Directors.
Liability of promisor is primary in case of indemnity, in guarantee liability is secondary.
In guarantee, there is existing debt, but in indemnity there is possibility of future loss.
Example of indemnity - Pure Insurance
Example of Guarantee - Bank gives Loan to company upon personal guarantee of Directors.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Taxable or Tax exempt
- CAPITAL GAIN BASE ON NOTIFICATION
- Form 140 tds
- TDS Deducted AY-2013-14 Not Reflected in 26as
- ADVANCE PAYMENT OF ADVOCATE
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- NRI starting business in India
- Demand Outstanding AY 2013-14 TDS Deducted not shown in 26as
- CREDIT NOTES WITHOUT GST
- UNWANTED CREDIT BALANCE OF GST AS PER BOOKS
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
