Section 123 The Indian Contract Act, 1872
Section 123 – The Indian Contract Act, 1872
Title: “Contract of indemnity” defined
📜 Bare Act Language:
"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."
🔍 Explanation:
A contract of indemnity is a contract in which one party (the indemnifier) promises to compensate the other party (the indemnified) for any loss or damage caused by:
The indemnifier’s own actions, or
The actions of another person.
This is a special kind of contract governed by Sections 124 to 125 of the Act.
🧠 Key Features:
It is a promise to save from loss.
The loss must arise from human conduct (either of the promisor or someone else).
It may be express or implied, though Section 124 mainly deals with express indemnity.
⚖️ Example:
A contracts to indemnify B against the consequences of any legal proceedings B may face for publishing a book written by A.
→ If B is sued, A must compensate B.
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