Guarantee Agreement India

e. The First Party agrees that, notwithstanding the relief of M/s._____________________________________ by law or a bankruptcy/bankruptcy/liquidation/liquidation/dissolution of M/s._____________________________, this guarantee is maintained and remains in force and terminates only by the payment of the amount subsecured by M/s._____________________________________ or by the first party; In accordance with article 127 of the Act, anything done or any promise made in favour of the principal debtor is sufficient consideration for the guarantor of the guarantee. The consideration must be a new counterparty of the creditor and not a past counterparty. It is not necessary for the guarantor to receive consideration and, sometimes, the creditor`s tolerance is sufficient in the event of delay. The main feature of a permanent guarantee is that it applies to a number of separable and different transactions. Therefore, if a guarantee is given for an entire counterparty, it cannot be qualified as a permanent guarantee. The guarantee contract is a specific contract for which the Indian Acy contract has established certain rules. As we have already said, the fundamental function of a guarantee contract is to protect the creditor against losses and to give him confidence in the application of the contract with the promise of the guarantor. Each warranty contract has three parts and there are two types of warranties, i.e. a specific warranty and a permanent warranty. The nature of the warranty used depends on the situation and the contractual conditions.

The guarantor has certain rights vis-à-vis the other parties and the guarantor`s liability is deemed to be that of the principal debtor, unless otherwise provided in the contract. .

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