Distinguish between a contract guarantee and a contract of indemnity

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

principal debtor.

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.  



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