JSB171 Lecture Notes - Lecture 1: Security Interest, Strict Constructionism, Subrogation
Document Summary
Is this a guarantee? (distinguish from other things it could be: just because the contract refers to itself as a guarantee does not mean it is a guarantee terminology not conclusive. (western credit) Is it an indemnity? b: whether a contract is a guarantee or an indemnity is a question of construction, they are not mutually exclusive the contract can be an indemnity and a. It will be an indemnity when there is a promise to make good a loss, and no other party is responsible for that loss (direct acceptance) In a guarantee, obligation is to step in upon the default of another to pay (western credit) It will be an indemnity if the contract requires the making good of any and all loss (ie the totality of the transaction) In a guarantee, obligation to make good only particular breaches of a contract, so that they can be enforced.
