https://www.taxtmi.com/caselaws?id=304731 Promissory notes were construed with their recitals and surrounding correspondence to determine whether they created an indemnity or a guarantee. The notes did not oblige the maker to discharge the principal debtor on default; instead, they operated as an undertaking to make good any loss arising from the maker's unauthorised dealing with the plaintiffs' money. The distinction mattered because a guarantee depends on a principal debtor's default and co-extensive liability, while an indemnity permits recovery only after actual loss. As the claim sought any deficit remaining after sale of the mortgaged property, liability could arise only when an actual deficit existed, so the suit was premature and the decree against the maker's estate was set aside. en-us Wed, 20 Sep 1939 00:00:00 +0530 Tue, 18 Oct 2022 10:46:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=304731 Promissory notes were construed with their recitals and surrounding correspondence to determine whether they created an indemnity or a guarantee. The notes did not oblige the maker to discharge the principal debtor on default; instead, they operated as an undertaking to make good any loss arising from the maker's unauthorised dealing with the plaintiffs' money. The distinction mattered because a guarantee depends on a principal debtor's default and co-extensive liability, while an indemnity permits recovery only after actual loss. As the claim sought any deficit remaining after sale of the mortgaged property, liability could arise only when an actual deficit existed, so the suit was premature and the decree against the maker's estate was set aside. Case-Laws Indian Laws Wed, 20 Sep 1939 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=304731