Exam (elaborations)
Difference between Contract of Indemnity and Guarantee
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Difference between Contract of Indemnity and Guarantee
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Difference between Contract of Indemnityand Contract of Guarantee
Difference between Contract of Indemnity and Contract of Guarantee
Reading time:
8 mins read
Post category:
Contract Staffing
Post published:
September 21, 2021
In order to understand the difference between Contract of Indemnity and Contract of
Guarantee, we need to understand few important terms. Indemnity means “Security against
, loss”. Both indemnity and guarantee are contingent contracts that are governed by the
Contract Law.
While indemnity implies protection against loss, the guarantee is when an individual assures
the opposite party that he or she will fulfil the obligation in case of a default.
Indemnity means money that needs to be paid for the loss. If you want to secure your position
or interest in a given contract, you should opt for either of the two. However, before you go
ahead, you need to understand the differences between guarantee and indemnity. There are
some borderline differences between them.
Table of Contents
Key features of the contract of indemnity
Key features of contract of guarantee
Definition of Indemnity
Definition of guarantee
Conclusion:
Key features of the contract of indemnity
● Some key features include the fact that the contract is made for the protection of the
promise against contingent loss
● The event mentioned in the contract must take place
● As soon as the indemnified faces the loss, the liability of the indemnifier takes place
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