Contract of indemnity

According to the syllabus of B.com 1st year

1. SPECIAL CONTRACTS Course Co-Ordinator Ms. Neetu Kushwaha

2. CONTRACT OF INDEMNITY A contract by which one party promises to save the other from loss caused by him by the conduct of the promisor himself or by the conduct of any other person is called a contract of indemnity.

3. CONT…… To indemnify means to compensate or make good the loss. A Contract of Indemnity refers to a promise made by one person to make good any loss or damage another has incurred or may incur by acting at his request or for his benefit .

4. Parties to the Contract of Indemnity The person who undertakes or agrees to compensate the loss is called the Indemnifier , and the person whose loss is to be made good is called the Indemnity holder or Indemnified.

5. Essentials of Contracts of Indemnity Essentials of a Valid Contract. There must be loss either by the promisor’s conduct or by any other person’s conduct. Contract may be expressed or implied. It is a Contingent Contract by nature.

6. CONT………….. A Contract of fire insurance or marine insurance is always a contract of indemnity.

7. Rights of Indemnity Holder (Sec. 125)

8. RIGHTS OF INDEMNIFIER