Page 83 - DCOM103_COMMERCIAL_LAW

Commercial Law Pooja, Lovely Professional University

Notes Unit 8: Contract of Guarantee

CONTENTS
Objectives
Introduction

8.1 Meaning and Purpose of the Contract of Guarantee
8.1.1 Meaning of Guarantee
8.1.2 Purpose of Guarantee (S. 126)
8.2 Kinds of Guarantee
8.2.1 Oral or Written Guarantee

8.2.2 Specific and Continuing Guarantee

8.2.3 A Guarantee may either be for the Whole Debt or a Part of the Debt
8.3 Rights and Obligations of Creditors
8.3.1 Rights of a Creditor

8.3.2 Obligations imposed on a Creditor in a Contract of Guarantee
8.4 Rights, Liabilities and Discharge of Surety
8.4.1 Rights against the Creditor
8.4.2 Rights against the Principal Debtor
8.4.3 Rights against Co-sureties
8.4.4 Liability of Surety

8.4.5 Discharge of Surety
8.5 Summary
8.6 Keywords
8.7 Self Assessment

8.8 Review Questions
8.9 Further Readings

Objectives

After studying this unit, you will be able to:
Understand the meaning and purpose of the contract of guarantee
Explain the essential features of guarantee
Discuss the different kinds of guarantee

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