(INDEMNITY? A a Gl-—p® Q7—~ wa L- oo. What is Common Between Indemnity and Guarantee Contracts What is the Consideration in Contracts of Indemnity and Guarantee ?INDEMNITY eZ ‘Acontract in which one party Promises to another that he will yensate him for any loss —~ him by the act of the ro ‘promisor or the thre party. Iaoaty lisor or the third par Contract of Indemnity has 2 parties ~ Indemnity holder ~ Indemnifier ‘The purpose of contract of indemnity is to compensate for the loss. ‘The liability matures when the conti GUARANTEE A contract in which a party promises to "another party that he will perform the contract or compensate the loss, in case of the default of principal debtor, it is the contract of guarantee. Contract of Guarantee has 3 parties - Creditor Principal Debtor - Surety The purpose of contract of guarantee is to give assurance to the promise. Liability already exists. The dogree of liability of promisor py lnSecondany