CONTRACTS II

PRESENTATION

TOPIC: CONTRACT OF INDEMNITY

SUBMITTED TO:
RITU GUPTHA MA’M

SUBMITTED BY :
K SEETHA RAM SATISH
BBA LLB
2 YEAR
SUBMITTED ON:
9//09/2019
 ACKNOWLEGDEMENT

The success and the outcome of this project

required a lot of guidance and assistance from
many people and me extremely fortunate to
have got this along the completion of this project
work. Whatever I have done is only due to such
guidance and assistance and I could not forget to
thank them. I respect and thank Dr Ritu ma’am
for giving an opportunity to do this project on
time, I extremely grateful to her for providing
such a nice support and guidance.
I am grateful that I managed to complete this
project within the time given by Dr Ritu Gupta
Ma’am. Finally, I would like to express my
gratitude to my friends and respondents for
support and willingness to spend some time with
me.
 DECLARATION

I hereby declare that the project entitled

“CONTRACT OF INDEMNITY” is being submitted
by me in the partial fulfilment of the requirement
for my academic study of BBA LLB (HONS). The
matter embodied in this project report has not
been submitted to any other University or
Institution for the award of degree. This project
is my original work and it has not been presented
earlier in any manner. This information is purely
academic interest.
 INDEX

S.NO. CONTENT PAGE NO.

1 ABSTRACT 5-6
2 INTRODUCTION 7
3 ESSENTIAL 8
ELEMENTS
4 RIGHTS AND DUTIES 9
5 BIBILOGRAPHY 10
 ABSTRACT

Abstract (Contracts II )
Topic : Contract of Indemnity.
Basic introduction and definition:
The concept of indemnity is defined in Section
124 of the Indian Contract Act 1872. It is a
contract by which one party promises to save the
other from loss caused to him by the conduct of
the promiser himself or by the conduct of any
other person. There are two parties in this
contract namely
Indemnifier
And Indemnified or Indemnity holder.
These contracts are used in the business deals
and more often all insurance contracts are called
Indemnity contracts.
Keywords:
1.Indian contract Act
2.Indemnity
3.Indemnified
4.Indemnifier
5.Insurance

The objective of the project is to understand the

contract of Indemnity and its practical usage. The
detailed understanding about the parties to the
contract and their rights and duties explained
under section 125 of the Indian contract Act
1872.
 INRODUCTION

According to section 124 of ICA (Indian contract act)

Contract of indemnity is defined as :
THIS IS A CONTRACT WHERE ONE PARTY OF THE CONTRACT
PROMISES THE OTHER PARTY TO COMPENSATE FOR THE LOSS
OCCURRED BY HIM OR ANY OTHER PERSON

In simple words indemnity means protection

against future loss
Here the person who promises to compensate
the other person from loss is known as
indemnifier and the person who will be
compensated is known as indemnity holder or
indemnified. Here the person who is
indemnified can sue the indemnifier though the
loss is not occurred by the indemnifier .The term
indemnity agreement is mostly used in US and in
the business and insurance sector
 ESSINTIAL ELEMENTS OF INDEMNITY

It should satisfy all the elements of a valid

contract which are mentioned in section 10 of
ICA
Like:
1 offer
2 acceptance
3 meeting of minds
4 consideration
5 capacity
6 legality

And next the contract of indemnity should have

an indemnifier and indemnity holder and there
should be clear that it is contract of indemnity
RIGHTS AND DUTIES OF AN INDEMNITY HOLDER
According to section 125 of ICA
 Right to recover damages
The indemnity holder entitled to recover from
indemnifier all the damages which he/she is
compelled to pay in any suit in respect of any
matter covered by the contract of indemnity

 Rights to recover costs

The indemnity holder is entitled to recover from
indemnifier all costs which is compelled to pay
either in filing suit or defending to suit

 Right to sue for a specific performance

Indemnity holder is entitled to sue the
indemnifier for the specific performance of the
contract the indemnity holder may be entitled to
other equitable reliefs also
  Right to recover sums paid under
compromise
All the costs the indemnity holder paid during
the time of compromise if the compromise may
not satisfy
CASE:
Indo rama synthetics india ltd vs tokio general
insurance co. on 11 feb 2019
Nirmaliit singh hoon vs the state of west Bengal
and anr on 6 september, 1972
BIBILOGRAPHY:
 LAW NOTES .IN
 India kanoon.org