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Section 124, Contract Act 1872: 'Contract Of Indemnity' Defined

Section 124 under the Chapter VIII (Of indemnity and guarantee) of the Contract Act, 1872 of India - "Contract of indemnity" defined, is reproduced hereunder:—

“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.”

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