Gimi a sitable example from the chapter indemnity.

i am confuse about Surety, creditor and Principal debtor........ Please provide me some suitable guud example so that i may clear the concept.......I am talking about indemnity and Guarantee chapter.....

 

thanks for your post in advance

Replies (4)

Dear Nitin,

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.

For eg:

You have to take a loan from bank.

Then you would be a principal debtor because you want to take loan.

The bank would be a creditor as it provides loan.

But, as we know there is a requirement of guarantee for the purpose of loan. so your father who has a account in the bank and since he has a good relation with the bank or he has high repute gives gurantee that in case u make default in payment of loan...he shall pay the same..so he becomes surerty...!

I hope you are clear.

Regards

Rahul Gupta

thanks man u rock m much clear now

Originally posted by :Nitin Moudgil
"

hi, dear igive u one example so u can uderstand it

x borrowed money frm y and b give the suriety to y of x in this example x is principle debtor & y is creditor & b is suriety.
 
thanks for your post in advance

"


 

 thanks joshi radhesh k

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
22 September 2026
Account Assistant

Chirag P Shah & Co. Chartered Accountant

Pune

B.Com

View Details
Company
19 October 2026
Accountants/Articles (Freshers/Experienced)

ADY & CO.

New Delhi

Graduate (Any)

View Details
Company
14 October 2026
Asst. Manager/Dy Manager (Costing)

manufacturing

Pune

CMA

View Details
Company
06 October 2026
Assistant Manager - Audit and Compliance

Ravi K Jain & Co

Noida

Others

View Details
Company
Featured 03 October 2026
Accountant

A P Lodha and Associates

Jalna

B.Com

View Details
Company
10 October 2026
Accounts Associate Level 1

Abic and Mani Chartered Accountants

Kottayam

B.Com

View Details
Company
ARTICLESHIP 17 October 2026
Articled Assistant

RRPM & Associates LLP

Chennai

CA Inter

View Details
Company
07 October 2026
Senior Account Manager

Amplio Invest

Mumbai

M.Com

View Details