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    In a contract of guarantee under the Indian Contract Act, 1872, there are:
    Question

    In a contract of guarantee under the Indian Contract Act, 1872, there are:

    A.

    Two parties and two contracts

    B.

    Three parties and three contracts

    C.

    Three parties and one contract

    D.

    Two parties and one contract

    Correct option is B


    A contract of guarantee involves three parties (principal debtor, creditor, and surety) and three contracts:
    1. Between the creditor and the principal debtor
    2. Between the creditor and the surety
    3. Between the surety and the principal debtor

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