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...
CS Pawan Kumar Baid
(Expert)
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.
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