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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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