Indemnity and Guarantee
After carefully reading this chapter, you will be able:
- To understand the meaning of contracts of Indemnity and contracts of guarantee.
- To get a clear idea about the rights of Indemnity holder.
- To distinguish between a contract of indemnity and a contract of guarantee.
- To form an idea about the essential elements of a contract of guarantee and kinds of guarantee contracts.
- To describe the rights and liabilities of the surety and when the surety will be discharged of his liabilities.
Contracts of Indemnity: Sec. 124 of the Indian Contract Act defines a contract of indemnity as, ‘a contract by which one party promises to save the other from the loss caused to him by the conduct of the promisor himself ...