Law · Contract Law
Which of the following statements regarding the critical distinctions in contract enforcement between indemnity and guarantee are correct? A. In a contract of indemnity, the indemnitee can enforce a claim for compensation only when an actual loss has occurred. B. A contract of guarantee allows the creditor to directly pursue the surety immediately upon the principal debtor's default. C. The indemnifier in an indemnity contract assumes the conditional promise to fulfill the obligations of a principal debtor if the debtor defaults. D. A contract of guarantee covers various types of losses, making its scope broader than an indemnity contract. Choose the most appropriate answer from the options given below:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1B, C and D Only
- 2A, C and D Only
- 3B and C Only
- 4A and B Only✓
Correct answer
A and B Only
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