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    Indemnity Partnership

    Uploaded by

    Shubham Phophalia
    The document discusses contracts of indemnity under Indian law. It defines a contract of indemnity as one where one party promises to save the other from loss caused by the conduct of the promisor or a third party. The key parties are the indemnifier and indemnified. Essential features include a valid contract, express or implied terms, liability arising or loss suffered by the indemnified, and loss caused by human conduct. The indemnified is entitled to damages, costs, and sums paid under any authorized compromise. The document also discusses recommendations to further define rights and remedies of indemnified parties.

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    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd

    Indemnity Partnership

    Uploaded by

    Shubham Phophalia
    110 views8 pages
    The document discusses contracts of indemnity under Indian law. It defines a contract of indemnity as one where one party promises to save the other from loss caused by the conduct of the promisor or a third party. The key parties are the indemnifier and indemnified. Essential features include a valid contract, express or implied terms, liability arising or loss suffered by the indemnified, and loss caused by human conduct. The indemnified is entitled to damages, costs, and sums paid under any authorized compromise. The document also discusses recommendations to further define rights and remedies of indemnified parties.

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    1. Indemnity Partnership ppt

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    The document discusses contracts of indemnity under Indian law. It defines a contract of indemnity as one where one party promises to save the other from loss caused by the conduct of the promisor or a third party. The key parties are the indemnifier and indemnified. Essential features include a valid contract, express or implied terms, liability arising or loss suffered by the indemnified, and loss caused by human conduct. The indemnified is entitled to damages, costs, and sums paid under any authorized compromise. The document also discusses recommendations to further define rights and remedies of indemnified parties.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    110 views8 pages

    Indemnity Partnership

    Uploaded by

    Shubham Phophalia
    The document discusses contracts of indemnity under Indian law. It defines a contract of indemnity as one where one party promises to save the other from loss caused by the conduct of the promisor or a third party. The key parties are the indemnifier and indemnified. Essential features include a valid contract, express or implied terms, liability arising or loss suffered by the indemnified, and loss caused by human conduct. The indemnified is entitled to damages, costs, and sums paid under any authorized compromise. The document also discusses recommendations to further define rights and remedies of indemnified parties.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 8

    Lecture-1

    Law of Contracts-II

    Contract of Indemnity

    Date: 03/07/2013 Slide-1


    Lecture-
    1
    Law of Contracts-II
    (Contract of Indemnity)
    • General and Special Contracts
    • S. 124 defines a contract of indemnity as: 
    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, is called a “contract of indemnity”.
    • Parties to a contract of indemnity:
    – ‘Indemnifier’ and
    – ‘Indemnified’ or ‘Indemnity-holder’
    • Illustrations: PNVSV Prasad v Union of India
    (1995) 1 Andh WR 120 [A, 481] employee can
    leave employment before agreed period
    provided there will be forfeiture of bond
    money necessary to indemnify employer of
    his losses

    Date: 03/07/2013
    Slide-1
    Lecture-
    1
    Law of Contracts-II
    (Contract of Indemnity)

    • Essential Features:
    1. Valid contract.
    2. Either written or oral; express or implied.
     Secretary of State v The Bank of India Ltd (1938) 175 IC
    327 (PC): AIR 1938 PC 191 [A, 480-81] implied indemnity
    3. The liability must have arisen or the indemnified must have
    suffered some loss.
    4. Loss must be caused by some human agency.
    5. The indemnified shall be entitled to all the damages which he
    has paid, all costs which he may have compelled to pay in any
    suit, and all sums paid by him under any compromise. (S. 125)
    Date: 03/07/2013 Slide-3
    Lecture-
    1
    Law of Contracts-II
    (Contract of Indemnity)

    • Contract of Insurance: Whether or not a


    contract of indemnity? [A, 480]

    • Indian Law of Indemnity v English Law of


    Indemnity [A, 479]
    • Situations like Adamson v Jarvis (1827) 4 Bing
    66: 5LJ (OS) (CP) 68: 29 RR 503. –S. 223 of the
    ICA [A, 479] plaintiff sold cattle on directions of defendant- D
    not rightful owner- sued for indemnity for loss
    Date: 03/07/2013 Slide-4
    Lecture-
    1
    Law of Contracts-II
    (Contract of Indemnity)
    • Right of indemnity-holder when sued (S. 125):
    The promisee in a contract of indemnity, acting within the scope
    of his authority, is entitled to recover from the promisor-
    o (1) all damages which he may be compelled to pay in any suit in respect of
    any matter to which the promise to indemnity applies;
    o (2) all costs which he may be compelled to pay in any such suit, if in
    bringing of defending it, he did not contravene the orders of the promisor,
    and acted as it would have been prudent for him to act in the absence of
    any contract of indemnity, or if the promisor authorised him to bring or
    defend the suit; 
    o (3) all sums which he may have paid under the terms of any compromise of
    any such suit, if the compromise was not contrary to the orders of the
    promisor, and was one which it would have been prudent for the promisee
    to make in the absence of any contract of indemnity, or if the promisor
    authorised him to compromise the suit.
    Date: 03/07/2013 Slide-5
    Lecture-
    1
    Law of Contracts-II
    (Contract of Indemnity)

    • Commencement of liability: Gajanan


    Moreshwar v Moreshwar Madan AIR 1942 Bom
    302—Ss 124-125 are not exhaustive on the law
    of indemnity [A, 482-83]

    • Recommendations of the Law Commission of


    India: 13th Report, 1958, on the Indian Contract
    Act 1872.

    Date: 03/07/2013 Slide-6


    Lecture-
    1
    Law of Contracts-II
    (Contract of Indemnity)
    • Recommendations of the Law Commission of
    India: 13th Report, 1958, on the Indian Contract
    Act 1872.
    – A contract by which one party promises, expressly or
    impliedly, to save the other from loss caused to him
    by the conduct of the promisor himself, or by the
    conduct of any other person or by any event not
    depending on such conduct, is called a “contract of
    indemnity”.
    • The LCI recommended for the insertion of one more section, i.e.
    S 125 A, with a view to fully define the rights and remedies of
    the indemnity holder even in cases where he has not been sued.
    Date: 03/07/2013 Slide-7

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