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Contract OF Indemnity: Submitted To:-Harshita Thalwal Submitted By: - Kawaljeet Kaur (20BAL5003)

This document defines and provides details about a contract of indemnity under Indian law. It states that a contract of indemnity is one where one party promises to save the other from any loss caused by the conduct of the promisor or another person. It outlines the essential elements of such a contract, including that it must specify the reason for loss and all requirements of a valid contract must be met. It also describes the rights of the indemnity holder, such as the right to recover damages, costs, or sums paid resulting from matters covered by the contract.

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Kawaljeet Kaur
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67 views10 pages

Contract OF Indemnity: Submitted To:-Harshita Thalwal Submitted By: - Kawaljeet Kaur (20BAL5003)

This document defines and provides details about a contract of indemnity under Indian law. It states that a contract of indemnity is one where one party promises to save the other from any loss caused by the conduct of the promisor or another person. It outlines the essential elements of such a contract, including that it must specify the reason for loss and all requirements of a valid contract must be met. It also describes the rights of the indemnity holder, such as the right to recover damages, costs, or sums paid resulting from matters covered by the contract.

Uploaded by

Kawaljeet Kaur
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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CONTRACT

OF
INDEMNITY

Submitted to :- Harshita Thalwal


Submitted by :- Kawaljeet kaur
(20BAL5003)
INRODUCTION TO CONTRACT OF
INDEMNITY ( SECTION 124)
DEFINITION:- A contract is called as a “contract of
indemnity” if one party promises to save the other from
loss caused to him by the conduct of the promisor
himself, or by the conduct of any other person.
MEANING:-
 To make good the loss incurred by another person.

 To compensate the party who has suffered some loss.

 To protect a party from incurring a loss.


EXAMPLE

X is promising Y that if you will suffer any kind of loss


because of him(X) or another person then he will
compensate him (Y).
 Indemnity holder:- person to whom the promise is made.

 Indemnifier :- The person who promises to idemnify.


ESSENTIAL ELEMENTS OF THE
CONTRACT OF INDEMNITY
Reason for loss:- The contract of indemnity must specify
that indemnity holder shall be protected from the
Loss caused due to :-
 Action of the promisor himself.

 Action of any other person

 Any act, event or accident which is not in the control of


the parties.
ESSENTIAL ELEMENTS OF THE
CONTRACT OF INDEMNITY
 Contract:- all the essentials of a valid contract must also
be present in the contract of indemnity.
 Example :- A asks B to beat X and promises to
indemnify B against the consequences. B beats X and is
fined Rs.5,000. B cannot claim this amount from A
because the object of the agreement was unlawful.
 Loss to one party

 Indemnity by the promisor


MODES OF CONTRACT OF INDEMNITY
 Expressed :- when a person expressly promises to
compensate the other from the loss.
 Implied :- when the contract is to be inferred from the
conduct of the parties or from the circumstances of the
case.
RIGHTS OF INDEMNITY HOLDER
 Right to recover damges :- The indemnity holder has
the right to recover all the damages which he is
compelled to pay in any suit in respect of any matter
covered by the contract of indemnity.
RIGHTS OF INDEMNITY HOLDER
 Right to recover costs :- the indemnity holder has the
right to recover all the costs which he is compelled to
pay in bringing or defending such suit.
condition:-
 The indemnifier authorized him to bring or defend the
suit.
 The indemnity holder did not contravene the orders of
the indemnifier, and The indemnity holder acted as it
would have been prudent for him to act in the absence
of any contract of indemnity.
RIGHTS OF INDEMNITY HOLDER
 Right to recover sums paid :- The indemnity holder has
the right to recover all the sums which he has paid under
the terms of a compromise of such suit.
 The indemnifier authorized him to compromise the suit.
 The indemnifier holder did not contravene the orders of
the indemnifier , and the indemnity holder acted as it
would have been prudent for him to act in the absence of
any contract of indemnity.

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