Answers: A contract of guaranty is a collateral undertaking, and presupposes an original contract; while a contract of indemnity is untested and independent.
In a contract of indemnity, the undertaking is to make honourable and save safe the person, next to whom the contract is made, upon an obligation of such party to a third person; while, within a contract of guaranty, the obligation is to answer for the debt, defaulting, or miscarriage of another to the person near whom the contract is made.