Professional Documents
Culture Documents
Shubham Agarwal
SPECIAL CONTRACTS
Sections 124 238
INDEMNITY
&
GUARANTEE
Secs. 124 - 147
BAILMENT
&
PLEDGE
Secs. 148 - 181
AGENCY
Secs. 182
CONTRACT OF INDEMNITY
DEFINITION
Meaning of Indemnity:
To indemnify means to save from loss
Indemnity means to compensate or save or protect the
person from loss or make the loss good.
There are two parties: A Promisor and a Promisee
A person who promises to make good the losses, i.e.,
the promisor who promises to protect the other person
from loss is called the INDEMNIFIER and the person
who is promised that he shall be protected incase a
loss is suffered i.e., the promisee is called the
INDEMNITY-HOLDER or the INDEMNIFIED .
By a contract of indemnity, a security is provided to the
ESSENTIALS OF INDEMNITY
Must contain all the essentials of a valid
contract.
There must be an actual loss suffered, either
by the promisors conduct or by the conduct of
any other person.
The loss must be caused by human conduct
only.
The promise of indemnity may either be
express or implied.
By nature it is a contingent agreement.
The contract is mainly to reimburse the loss
incurred.
(b) all the costs of suits that he may have had to pay
operation of law.
Commencement of the
Indemnifiers Liability
There are several judgements which have decided
Express