What is the difference between guarantee and indemnity under English law?

A guarantee and an indemnity are two distinct types of contractual arrangements under English law, each with its own distinct characteristics and legal effects. Guarantee: A guarantee is a promise by a third party (the guarantor) to be liable for the performance of the primary obligation in the event that the original obligor fails to perform. The guarantee is collateral to the primary obligation, and the guarantor is only liable if the original obligor fails to perform. Indemnity: An indemnity is a promise by one party (the indemnifier) to compensate the other party (the indemnified) for any losses suffered as a result of a specified event. The indemnifier is directly responsible for compensating the indemnified for any losses, regardless of whether the original obligor performs the primary obligation. In summary, a guarantee is a secondary obligation, where the guarantor is only liable if the primary obligor fails to perform, while an indemnity is a direct obligation, where the indemnifier is responsible for compensating the indemnified regardless of the performance of the primary obligation.