Section 126 – THE INDIAN CONTRACT ACT, 1872

“Contract of guarantee”, “surety”, “principal debtor” and “creditor”

A “contract of guarantee” is a contract to perform the promise, or discharge the liability, of a third person in case of his
default. The person who gives the guarantee is called the “surety”; the person in respect of whose default
the guarantee is given is called the “principal debtor”, and the person to whom the guarantee is given is
called the “creditor”. A guarantee may be either oral or written.

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