State the rights of Indemnity-holder when sued.
CA Foundation · Business Laws · PYQS · September 2024
State the rights of Indemnity-holder when sued.
Suggested Answer and Working Notes:
(a) Rights of Indemnity-holder when sued (Section 125 of the Indian Contract Act,1872): The promisee in a contract of indemnity, acting within the scope of his authority, is entitled to recover from the promisor/indemnifier— (a) all damages which he may be compelled to pay in any suit (b) all costs which he may have been compelled to pay in bringing/ defending the suit and (c) all sums which he may have paid under the terms of any compromise of suit.
Topics: The Indian Contract Act, 1872, The Indian Contract Act, 1872, The Indian Contract Act, 1872
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