Section 124 Indian Contract Act 1872 (“Contract of indemnity” defined)
Section 124 Indian Contract Act 1872
Section 124 of the Indian Contract Act 1872 is about “Contract of indemnity” defined. It is under CHAPTER VIII of the Act. CHAPTER VIII is titled OF INDEMNITY AND GUARANTEE.
“Contract of indemnity” defined
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.
Illustration
A contracts to indemnify B against the consequences of any proceedings which C may take against B in respect of a certain sum of 200 rupees. This is a contract of indemnity.
See also:
Section 75 Indian Contract Act 1872 (Party rightfully rescinding contract, entitled to compensation)