CONTRACT OF INDEMNITY
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What is a contract of indemnity as defined under the Indian Contract Act, 1872?
A contract of indemnity is a contract by which one party (indemnifier) promises to save the other (indemnity holder) from loss caused by the promisor's conduct or by the conduct of any other person.
Which section of the Indian Contract Act, 1872 defines a contract of indemnity?
Section 124 defines contract of indemnity.
Under which section of the Indian Contract Act, 1872 is a contract of indemnity defined?
A contract of indemnity is defined under Section 124 of the Indian Contract Act, 1872.
Who is the party that promises to compensate the loss in a contract of indemnity?
The indemnifier promises to compensate the loss.
What rights does an indemnity holder have when sued, under Section 125 of the Indian Contract Act?
The indemnity holder has the right to recover all damages, costs, and sums paid under any compromise from the indemnifier, provided the compromise was not contrary to the indemnifier's orders.
Who is referred to as the 'indemnity holder' or 'indemnified' in a contract of indemnity?
The party protected against loss is the indemnity holder.
What is the key distinction between a contract of indemnity and a contract of guarantee?
In indemnity, the indemnifier's liability is primary and independent, while in a guarantee the surety's liability is secondary and contingent on the principal debtor's default.
What must exist for a valid contract of indemnity to be enforceable?
All elements of a valid contract must exist.
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