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Query Details

Asked by priyam on :Dec. 13, 2017

How many contracts are there in a contract of gua…

How many contracts are there in a contract of guarantee??

How many contracts are there in a contract of guarantee??

0

Chiranjibi Aug. 08, 2018

There are three sub contracts in a contract of guarantee.

For quick reference:

Mr Giver is Creditor, Mr. Taker is Principal Debtor, and Mr. Safe is Surety.

Here, Mr Giver has given a loan to Mr. Taker and Mr. Safe stands as guarantee for the transaction.

There are the three contracts involved.

Contract 1: (between Creditor and the principal Debtor)

Mr. Giver gives a loan to Mr. Taker.

Contract 2: (between Surety and principal debtor)

Mr. Safe agrees to stand guarantee to the transaction.

Contract 3: (between Surety and Creditor)

Mr. Safe agrees to pay the loan to Mr. Giver if Mr. Taker fails to repay the loan.

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