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CONTRACT - ii

CONTRACT - ii UNIT 1. Meaning of Indemnity INDEMNITY. The term 'indemnity'. means to make good the The CONTRACT of Indemnity and CONTRACT of Guarantee are loss or to compensate the party who has sufferedspecific types of CONTRACT . The specific provisions relating to some loss. these contracts are contained in Sections124 to 147 of the Indian CONTRACT Act, 1872. In addition to these specific provisions, the general principles of contracts are also applicable to such specific contracts. CONTRACT OF INDEMNITY [Section 124]. 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".

absence of privity of contract between him and a third party. He can sue the third party in his own name if there in an assignment in his favour. A surety, on discharging the debt of principal debtor, can sue 'the principal debtor in his own EXTENT OF SURETY’S LIABILITY:- CONTRACT - ii

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