Section 124 The Indian Contract Act, 1872
📜 Section 124 – The Indian Contract Act, 1872
Definition of "Contract of Indemnity"
"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 special type of contract.
It involves one party (the indemnifier) agreeing to compensate the other party (the indemnified) for any loss caused:
by the conduct of the indemnifier himself, or
by the conduct of any third party.
🧾 Example:
Suppose A contracts to indemnify B against the consequences of any legal proceedings C might initiate against B. If C sues B, and B suffers a loss, A must compensate B under this indemnity contract.
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