What is a contract of indemnity

CA Preeti Aggarwal
CA Preeti Aggarwal
4.8 هزار بار بازدید - 6 ماه پیش - The term “Indemnity” means to
The term “Indemnity” means to make good the loss or to compensate the party who has suffered some loss.
Section 124, of the Indian Contract Act, 1872 defines contract of indemnity as, ‘it is a contract by which 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.”  

Example: Mr. X contracts with the Government to return to India after completing his studies at University of Cambridge and serve the Government for a period of 3 years. If Mr. X fails to return to India, he will have to reimburse the Government. It is a contract of indemnity.

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6 ماه پیش در تاریخ 1402/12/08 منتشر شده است.
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