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In a contract of guarantee, the three parties are:
AIndemnifier, indemnified, and a third party
BBailor, bailee, and pawnee
CSurety, principal debtor, and creditor
DPrincipal, agent, and sub-agent
Answer & Solution
Correct answer: C. Surety, principal debtor, and creditor
1. A surety gives the guarantee.
2. The principal debtor is the person for whom the guarantee is given.
3. The creditor is the person to whom the guarantee is given.
_Source: ICMAI BoS CMA Foundation Paper 1 (Business Laws), Module 2 §2.7 (Indemnity/Guarantee/Pledge/Agent), p. 91-99_
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