Contracts of Indemnity and Guarantee

Revision sheet excerpt

Course Outline

  1. Indemnity Contracts and Scope
  2. Rights of the Indemnity Holder
  3. Guarantee Parties and Structure
  4. Essentials and Types of Guarantee
  5. Indemnity and Guarantee Compared
  6. Nature of Surety Liability
  7. Revocation and Discharge Events
  8. Invalid Guarantees and Creditor Conduct
  9. Rights of Surety and Co-Sureties

1. Indemnity Contracts and Scope

Key Concepts & Definitions

  • Contract of Indemnity : A contract in which one party promises to save the other from loss caused by the conduct of the promisor or the conduct of any other person under Section 124 of the Indian Contract Act, 1872.

★ Must-know

  • The indemnifier is the party who promises to compensate for the loss, while the indemnified or indemnity-holder is the party whose loss is to be made good.

  • Under the statutory definition, loss caused by an accident without human conduct or by an act of God is not covered by a contract of indemnity.

Further detail

  • A contract of indemnity may be express or implied and must satisfy the essentials of a valid contract.
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Quiz preview

1. Which situation falls within the statutory definition of a contract of indemnity?

2. In a contract of indemnity, who is responsible for promising compensation, and who receives protection against the loss?

3. Which loss is excluded from coverage under the statutory definition of indemnity?

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Flashcards preview

What is a contract of indemnity?

A contract where one party promises to save the other from loss caused by the promisor or others under Section 124.

Who is the indemnifier in a contract of indemnity?

The party who promises to compensate for the loss.

Who is the indemnity-holder in a contract of indemnity?

The party whose loss is to be made good.

Does a contract of indemnity cover loss caused by an accident without human conduct?

No, such loss is not covered under the statutory definition.

Can a contract of indemnity be implied?

Yes, it may be express or implied.

What must a contract of indemnity satisfy?

The essentials of a valid contract.

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The revision sheet covers the essential concepts of Contracts of Indemnity and Guarantee. It is organized by topic to facilitate learning and memorization, with key definitions, explanations and summaries.

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The quiz contains 28 multiple-choice questions with detailed corrections and explanations for each answer. Ideal for testing your knowledge and identifying gaps.

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