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hello guys welcome to Alan Shapiro in this video we will see the difference between contract of indemnity and contract of guarantee Im Ritesh barrack so lets start indemnity and guarantee both are different things indemnity is a contract where one party promises to compensate another party for the losses whereas guarantee is a contract in which one party promises to discharge the liability of a third person in case of his default number of parties is also different in both the contracts there are two parties in a contract of indemnity first party is indemnify ER second party is indemnified indemnify ER is the person who promises to save another party and indemnified is the person who is saved from the losses and in a contract of guarantee there are three parties that is creditor principal debtor and surety now lets see the difference on the basis of nature of liability the liability of indemnify ER is primary but the liability of surety is secondary because principal debtor is prima
