AAn indemnity is for reimbursement of a loss, while a guarantee is for security of the creditor.
BIn a contract of indemnity the liability of the indemnifier is secondary and arises when the contingent event occurs. In case of contract of guarantee the liability of surety is primary and arises when the principal debtor defaults.
CThe Indemnifier after performing his part of the promise has no rights against the third party and he can sue the third party only if there is an assignment in his favour. Whereas in a contract of guarantee, the surety steps into the shoes of the creditor on discharge of his liability, and may sue the principal debtor.
✓In a contract of indemnity the liability of the indemnifier is primary and arises when the contingent event occurs. In case of contract of guarantee the liability of surety is secondary and arises when the principal debtor defaults.
Answer
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Under the Transfer of Property Act, a 'mortgage' is the transfer of an interest in immovable property to secure a loan. Section 58 defines six types: simple, mortgage by conditional sale, usufructuary, English, equitable, and anomalous.