Base of distinction




To save indemnifier from loss

To provide necessary security to the creditor.

Numbers of parties

Two parties

Three parties

Number of Contract

One agreement of contract

Three agreement of contract

Nature of liability

Primary liability is of the indemnifier. It arises immediately after loss from the collateral event.

Secondary liability is of the surety and it arises only on the default of the principal debtor.


It has consideration.

It has not direct consideration to surety.

Commencement                            of liability

The liability of indemnifier arises after the happening of the collateral event.

The liability of the surety arises on the defaults of the principal debtor.

Discharge            from liabilities

The indemnifier discharges after paying indemnity to the indemnity holder.

The surety discharges when the creditor discharge or he fulfils the debtors' liability.

Nature of contract

It has contingent nature.

It has general nature

Right                              to


The indemnifier has no right of reimbursement of the amount paid to the indemnity holder.

The surety has the right of reimbursement of the amount from the principal debtor, which is paid to the




Number of promisor

Indemnifier is only one promisor

Principal debtor and Surety both are promisor.


It has limited scope.

It has boarder scope.