JAIIB LRAB Unit 10 - Indemnities

Section

Description

124

Contract of Indemnity : A contract by which one party promises to save the other from loss caused by him by the conduct of the promisor himself, or by the conduct of any other person.

Person giving the promise is called the Indemnifier and the person whom the promise is made is called the Indemnified or Indemnity Holder.

125

Rights of an Indemnity Holder when sued : The promisee in a contract of Indemnity, acting within the scope of his authority, is entitled to recover from the promisor – All damages which he may be compelled to pay in any suit, all costs, all sums.
Above Rights of an Indemnify Holder is subject to:

His acting within the scope of his authority

He does not contravene the specific directions of the promisor