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INTRODUCTION, , * A “contract of guarantee ” is a contract to, perform the promise, or discharge the, liability, of a third person in case of his, default. Section 126 of the Indian Contract Act, defines contract of guarantee,, , The person who gives the guarantee is called, the” surety”;, , the person in respect of whose default the, guarantee is given is called the ” principal, debtor “, and the person to whom the, guarantee is given is called the ” creditor “. A, guarantee may be either oral or written., Consideration for guarantee.-Anything done,, or any promise made, for the benefit of the, principal debtor, may be a_ sufficient, consideration to the surety for giving the, guarantee.