Indian Contract Act Section 124 — “Contract of indemnity” defined

CHAPTER VIII OF INDEMNITY AND GUARANTEE

Commercial / Corporate

Summary

A contract of indemnity is an agreement where one person promises to protect another person from a loss. This loss can be caused by the actions of the person making the promise, or by the actions of any other person. In simple terms, it is a promise to make good a loss that the other party suffers.

Official Text

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