| 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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