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1. A contract of indemnity involves one party promising to compensate the other for losses. The party providing indemnification is the indemnifier, while the party receiving it is the indemnity holder. 2. A surety guarantees a debt owed by a principal debtor to a creditor. A surety can be discharged from liability in several circumstances, such as revoking the guarantee via notice, the death of the surety, or any variance in the terms of the contract without the surety

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