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CONTRACT OF INDEMNITY, LEGODESK, WHAT IS CONTRACT OF INDEMNITY?, OBJECTIVE OF CONTRACT OF INDEMNITY, PARTIES:, A contract of indemnity has, two parties:, • Promisor or indemnifier, • promisee or indemnified or, "A contract by which one party promises to save other, from loss caused to him by conduct of promisor himself,, or by conduct of any other person", The objective of entering into a contract of indemnity is, to protect the promisee against unanticipated losses., indemnity-holder, ESSENTIALS OF CONTRACT OF INDEMNITY:, Parties to a contract, Express or implied, Protection of loss, Essentials of a valid contract, There must be two parties, namely,, promisor or indemnifier and the, promisee or the indemnified or, indemnity-holder., The contract of indemnity may be, express (made by words spoken or, written) or implied, A contract of indemnity is entered, into for the purpose of protecting, the promisee from the loss., The principles of the general law, of contract contained in Section 1, to 75 of Indian Contract Act, 1872, are applicable to them, RIGHTS OF PROMISEE/ THE INDEMNIFIED/ INDEMNITY HOLDER:, COMMENCEMENT OF LIABILITY OF PROMISOR:, • Right to recover damages paid in a suit 'Section 125(1)', • Indemnifier is not liable until indemnified has suffered loss., • Right to recover costs incured in defending a suit 'Section 125(2)', • Indemnified can compel the indemnifier to make good his, • Right to recover sums paid under compromise 'Section 125(3)', loss although he has not discharged his liability., | [email protected], legodesk.com, | [email protected]