|Contract of Guarantee||Contract of Indemnity|
|This is a contract whereby a party referred to as a guarantor or surety undertakes to be collaterally or secondarily responsible for the acts or defaults of another known as the
|This is a contract whereby a party known as indemnifier undertakes to be primarily responsible for the performance of a particular thing.|
The undertaking is made to the creditor.
|The contract consists of two parties, the indemnifier and the party to be indemnified.|
|It is a tripartite agreement.||The indemnifier has a direct interest in the contract.|
|A contract of guarantee may be sole, continuing or fidelity.||
The indemnifiers liability is primary.
|It consists of three parties, namely the guarantor principal debtor and creditor.|
|The guarantor liability is secondary.|
|The guarantor has no direct interest in the contract between the creditor and the principal debtor.|