Student at NMIMS, Bangalore, India
This research paper aims to find the basic difference between contract law in India and in common law countries regarding the subject of guarantee and indemnity contracts. Both these contracts are highly essential components of the "Indian Contract Act, 1872", which simplified and reduced the amount of risk involved in business transactions. This research paper explains Sections 124, 125, and other sections and compares them to the English Common Law. It talks about how the primary objective of indemnity is to relieve the promisee of responsibility for any and all losses or damages that they have incurred or suffered because of the act of the promisor itself or some other party. It also talks about the contract of guarantee which allows a principal debtor to get credit from the creditor because he knows that the surety will pay back the credit in case the principal debtor doesn't. It shows the important parts of indemnity and guarantee that are needed while drafting a legal contract. Cases from both countries have also been used by researchers in this research paper to make the comparison clearer and more effective. The main reason why the English Common Law system was chosen was that India also uses the Common Law system. Throughout this study, we have attempted to demonstrate how this statute impacts these two principal democracies (India and U.K.) which do the same task in several ways. Researchers have tried to show how indemnity and guarantee work in these two democracies and what is essential and important about them. In this research paper, the differences between these two countries are made clear.
International Journal of Law Management and Humanities, Volume 6, Issue 3, Page 1366 - 1399DOI: https://doij.org/10.10000/IJLMH.114983
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