https://www.taxtmi.com/caselaws?id=304731 Promissory notes that merely require a party to make good losses arising from that party's unauthorised dealings with another's money create an indemnity, not a guarantee. A guarantee requires a principal debtor's default and imposes co-extensive liability, whereas indemnity becomes enforceable only after the promisee has suffered an actual loss. Where recovery is sought only for a deficit remaining after sale of mortgaged property, liability under the indemnity arises only upon an actual deficit. The claim against the indemnifier was therefore premature, and the decree against that party 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 that merely require a party to make good losses arising from that party's unauthorised dealings with another's money create an indemnity, not a guarantee. A guarantee requires a principal debtor's default and imposes co-extensive liability, whereas indemnity becomes enforceable only after the promisee has suffered an actual loss. Where recovery is sought only for a deficit remaining after sale of mortgaged property, liability under the indemnity arises only upon an actual deficit. The claim against the indemnifier was therefore premature, and the decree against that party was set aside. Case-Laws Indian Laws Wed, 20 Sep 1939 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=304731