be accepted, either by express or implied acceptance. If a surety's assent to a guarantee has been procured by fraud by the person to whom it is given, there is no binding contract. Fraud may consist of suppression, concealment or misrepresentation. However, only facts that are really material to the risk undertaken need be spontaneously disclosed. The competency of the parties to enter into a contract of guarantee may be affected by insanity or intoxication of the surety, if known to the creditor, or by any disability. The ordinary disabilities are those of minors. In some guarantees the consideration is "entire". For example, in consideration for a lease being granted, the surety becomes answerable for the performance of the covenants of the lease. In other cases it is "fragmentary" or supplied from time to time, as where a guarantee is given to secure the balance of a running account at a bank, for goods supplied When the consideration is "entire", the guarantee runs on through the duration of the lease and is irrevocable. When the consideration is "fragmentary", unless the guarantee stipulates to the contrary, the surety may at any time terminate his liability under the guarantee. Total failure of consideration or illegal consideration by the party giving a guarantee will prevent its being enforced. Though in all countries the mutual assent of two or more parties is essential to the formation of any contract, a consideration is not everywhere regarded as a necessary element. Thus in Scotland a contract may be binding without a consideration to support it. Cross guarantees Cross guarantees are created where two or more related businesses or individuals agree to guarantee each others' liabilities and obligations. Cross guarantees enable businesses within a corporate group to support each other with raising finance, reducing risk to lenders, or to win contracts based on a stronger financial position. Liability The liability incurred by a surety under his guarantee depends upon its terms, and is not necessarily coextensive with that of the principal debtor. It is, however, obvious that the surety's obligation cannot exceed that of the principal. By many existing civil codes, however, a guarantee which imposes on the surety a greater liability than that of the principal is not invalidated but is merely reducible to that of the principal. However, in India the liability of the surety is, unless otherwise provided by contract, coextensive with that of