Indemnity

Guarantee

Comprise only two parties- the indemnifier and the indemnity holder.

There are three parties namely the surety, principal debtor and the creditor

Liability of the indemnifier is primary

The liability of the surety is secondary. The surety is liable only if the principal debtor makes a default. The primary liability being that of the principal debtor.

The indemnifier need not necessarily act at the request of the indemnified.

The surety give guarantee only at the request of the principal debtor

The possibility of any loss happening is the only contingency against which the indemnifier undertakes to indemnify.

There is an existing debt or duty, the performance of which is guarantee by the surety