Contracts Project.docx - Final Project made in Partial...

Final Project made in Partial Fulfilment of the course Contracts - II
during the academic session 2017-18, Semester III.
On
RIGHTS OF SURETY AGAINST THE CREDITOR
Submitted to: -
Dr. Vijay Kumar Vimal
Lecturer of Law
Submitted by: -
Piyush Raj
Roll No. - 1545
C HANAKYA NATIONAL LAW UNIVERSITY, NYAYA NAGAR,
MITHAPUR, PATNA-800001, BIHAR, INDIA

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TABLE OF CONTENTS
ACKNOWLEDGEMENT …………………………………………………………3
AIMS AND OBJECTIVES ………………………………………………………...4
HYPOTHESIS ………………………………………………………………………5
RESEARCH METHODOLOGY …………………………………………………..6
INTRODUCTION …………………………………………………………………..7
ESSENTIALS OF A VALID CONTRACT OF GUARANTEE…………………..8
TYPES OF GUARANTEE…………………………………………………………..9
DISTINCTION BETWEEN CONTRACTS OF INDEMNITY AND CONTRACTS
OF GUARANTEE….……………………………… ................................................... 11
RIGHTS OF SURETY………………………………………………………………13
RIGHTS OF SURETY AGAINST THE CREDITOR...…………………………..14
CONCLUSION ………………………...…………………………………………….16
BIBLIOGRAPHY……………………………………………………………………18

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ACKNOWLEDGEMENT
I would like to thank my faculty Dr. Vijay Kumar Vimal, whose assignment of such a relevant
and current topic made me work towards knowing the subject with a greater interest and
enthusiasm and moreover he guided me throughout the project.
I owe the present accomplishment of my project to my friends, who helped me immensely with
sources of research materials throughout the project and without whom I couldn’t have
completed it in the present way.
I would also like to extend my gratitude to my parents and all those unseen hands who helped me
out at every stage of my project.

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AIMS AND OBJECTIVES
The researcher had aimed to:
1.
Study about the Contract of Guarantee and the essentials of it.
2.
Study about the distinction between Contracts of Indemnity and Contracts of Guarantee.
3.
Study about the Rights of the Surety Against the Creditor.

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HYPOTHESIS
The researcher had believed that:
1. The Surety has several rights against the Principal Debtor, the Creditor and the Co-
sureties.
2.
A surety is entitled to the benefit of every security which the creditor has against the
principal debtor at the time when the contract of suretyship entered into, whether the
surety knows of the existence of such security or not.

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RESEARCH METHODOLOGY
The researcher has primarily relied on the doctrinal method. Doctrinal Methods refer to Library
research, research or processes done upon some texts writings or Documents, legal propositions
and Doctrines, Articles, Books as well as Online Research and Journals relating to the subject.
Non-Doctrinal Method refers to non - conservative ways of research i.e. field work, interviews,
questionnaire, interacting with people and getting answers etc. This project is an intensive one so
doctrinal method is needed to arrive at concrete conclusions. The research is based on
comprehensive study of sources like text books, journals, articles, web sources etc .

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INTRODUCTION
Guarantee is security in form of a right of action against a third party called the surety or the
guarantor. The English law defines a ‘guarantee’ as a ‘promise to answer for the debt, default or