(1) A contract relating to guarantee shall be deemed to have been concluded in case it provides that if any person defaults in the repayment of the loan obtained by him or fulfillment of the obligation accepted by him/her, it shall be repaid or fulfilled by a third person.
(2) In case a third party has provided guarantee under Sub-section
(1) and in case the person who has to repay the loan does not repay it or fulfill the obligation to be fulfilled, the person guaranteeing such loan or obligation shall repay the loan or fulfill the condition according to the contract.
(3) Contract relating to guarantee must have been concluded in writing.