Contract 2 - || - A Complete Guide to the Indian Contract Act, 1872: Exam Notes for Students (MCQ based exam )
Unit 1: Indemnity, Guarantee, Bailment, and Pledge https://www.indiacode.nic.in/bitstream/123456789/2187/2/A187209.pdf IG - BP I ndemnity (Section 124). G uarantee (Section 126) , B ailment (Section 148): , and P ledge ( Section 172 ) 1. Contracts of Indemnity Definition (Section 124): A contract in which one party promises to compensate( मुआवजा ) the other for a loss caused by the promisor or a third party. Example : Car Insurance/ Life insurance contracts are common indemnity agreements. Rights of Indemnity Holder When Sued ( Section 125): Recover all damages paid in a suit. Recover costs incurred in defending the suit. Recover sums paid under a compromise if made in good faith. Example : A principal indemnifies an agent for losses due to third-party claims. Commencement of Liability : Liability begins when the indemnity holder suffers a loss. Case Law : Adamson v. Jarvis (1827) – An auctioneer indemnified for acting on a third party’s instructions. 2. Contracts of ...