Section 126 — "Contract of guarantee", "surety", "principal debtor" and "creditor".

Indian Contract Act, 1872
A "contract of guarantee" is a contract to perform the promise, or discharge the liability, of a third person in case of his default. 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.

Official Hindi (PDF) ↗

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