BUSINESS LAW

Mubasher Nazir
Recommended Books :
Mercantile law by Khawaj Amjad Saeed
Business law by Khalid Mehmood Cheema

Indemnity &
Guarantee

Indemnity
Def:

Save or Cover the loss

Caused by himself or any other party

Parties

Indemnifier
Indemnity Holder

Indemnity
Essentials
All essentials of Valid
2 parties
Express or Implied

Contact

Guarantee
A

contract of guarantee is a contract

To perform OR
Discharge the liability
Of a third person
In case of his default

Parties

Surety/Guarantor
Creditor
Principle Debtor

Essentials :
3 parties in contract

Principal Contract
Secondary Contract

Credit
or

P.Debt
or

Credit
or

Surety

Consideration
Misrepresentation
Concealment
Writing & Registration

 Nature

of Suretys Liability

Secondary
Immediate Existence on Default
Restoration of Security
NO Guarantee (Misrepresentation)
Death of P.Debtor no cancellation of Liability

 Kinds

of Guarantee

Specific
Continuing

Rights of Surety
Against Creditor
Right to Security
Right of Claim Set-of
Against Principal Debtor
Right of Subrogation
Right of Indemnity
Against Co-Surities
Similar Amount
Diferent Amount

 Discharge

of Surety Liability
Notice of Revocation
Death of Surety
Amendments without Notice
Discharge of P.Debtor
Creditors Action
Mismanagement with Security
Invalid contract of Guarantee