CRITICAL APPRAISAL OF THE ROLE OF SURETY IN GUARANTEE

AUTHOR – ADITI PAUL, STUDENT AT SYMBIOSIS LAW SCHOOL, PUNE

Best Citation – ADITI PAUL, CRITICAL APPRAISAL OF THE ROLE OF SURETY IN GUARANTEE, ILE FORTNIGHTLY REVIEW (ILE FN), 1 (1) of 2023, Pg. 28-32, APIS – 3920 – 0035 | ISBN – 978-81-964391-3-2.

Abstract

The term surety is used to the person who acts as a third – party security for a contract between a creditor and principle debtor. The creditor is the one who provides services or goods to the Principle Debtor on the guarantee provided by the surety, who will make the payment or performance in case of default by the Principle Debtor. The surety is entitled to recover all the costs incurred back from the Principle Debtor. This is known as a Contract of Guarantee and has been defined in the Indian Contract act from section 126 to 147. In the English law it is defined as “a promise to answer for the debt, default or miscarriage of another.”. This paper aims to explain the various roles that a surety assumes in the contract of guarantee; that of the Principle Debtor, Creditor, Beneficiary and how his rights and duties are altered according to the role partaken.

Keywords – Surety, Principle Debtor, Creditor, Liability, Discharge, Guarantee