Signed Indemnity Agreement Made Easy

Signed indemnity agreement

hi friends i am imran ali today my topic of discussion is contract of indemnity but before moving towards the topic let me remind you please don't forget to like and subscribe my youtube channel introduction the word indemnity means security or protection against a financial liability it typically occurs in the form of contractual agreement made between the parties in which one party agrees to pay for losses or damages suffered by the other party definition of indemnity according to black's law dictionary an undertaking whereby one agrees to indemnify another upon the occurrence of anticipated laws according to contract act section 124 a contract by which one party promises to save other from laws caused to him by the conduct of the promiser himself or by the conduct of any other person is called a contract of indemnity illustration and objective a contractor indemnify b against the consequences of any proceedings which c may take against b in respect of a certain sum of one thousand dollars this is a contract of indemnity section 124 deals with one particular kind of indemnity which arises from a promise made by an indemnifier to save the indemnified from the loss caused to him by the conduct of the indemnifier himself or by the conduct of any other person but doesn't deal with those clauses of cases where the indemnity arises from the loss caused by events or accidents which do not depend upon the conduct of indemnifier or any other person the objective of entering into a contract of indemnity is to protect the promises against unanticipated losses parties involved in a contract of indemnity number one indemnifier the person who promises to make good the loss is called indemnifier or promiser number two indemnified the person whose loss is said to be made good is called the indemnity holder or indemnified kinds of indemnity a promise to indemnity may be either expressed or implied number one express and indemnity is expressed when it is made by express promise between the parties number two implied an indemnity is implied when it has been inferred from the circumstances of a particular case essentials of contract of indemnity number one parties to a contract there must be two parties namely promiser or indemnifier and the promising or indemnit indemnity holder number two protection of laws a contract of indemnity is entered for the purpose of protecting the promises from the loss the loss may be caused due to the conduct of the promiser or any other person number three express or implied the contract of indemnity may be expressed or implied number 4 essentials of a valid contract a contract of indemnity is a special kind of contract the principles of the general law of contract contained in section 1 to 75 of the contract act 1872 are applicable to them therefore it must possesses all the essentials of a valid contract rights of indemnity holder a right to indemnity arises as soon as the party indemnified suffers a loss or anything happen against which he has been indemnified as per section 125 of the contract act 1872 the following rights are available to the promises or indemnity holder against the promiser or indemnifier provided he has acted within the scope of his authority number one right to claim damages an indemnity holder is entitled to claim all damages which he may have compelled to pay in any suit in respect of any matter to which the promise of indemnity applies number 2 right to recover all cost an indemnity holder is entitled to recover all costs reasonably incurred in resisting or reducing or ascertaining the claim but the party indemnified cannot recover cost when he has not acted as prudent men in defending the action against him or has not been authorized by the indemnity fire to defend the suit number three right to recover all sims an indemnity holder also has the right to recover from the indemnity indemnifier all sums which he may have paid under the terms of any compromise of any such suit if the compromise was not contrary to the orders of the promiser and was one which it would have been prudent for the promises to make it in the absence of any contract of indemnity or if the promiser authorized him to compromise the suit contract of guarantee aside from indemnity contracts the contract act likewise governs contract of guarantee these contracts may seem like indemnity contracts yet there are some contrast between them in guarantee contracts one party contracts to perform a promise or discharge a liability of a third party this will happen in case the party fails to discharge its obligation and defaults the person who gives the guarantee is the surety on the other hand the person for whom the surety gives the guarantee is the principal data similarly the person to whom he gives such guarantee is the creditor difference between indemnity and guarantee there are some significant differences between the contract of indemnity and guarantee first one is that in indemnity there are just two parties whereas in contracts of guarantee there are three parties second one is that in contract of guarantee there is existing debt or duty which is guaranteed by surety to discharge whereas in indemnity contracts liability is contingent and it may not arise at all third one is that an indemnifier may act with how the debtors behest whereas surety consistently sits tight for the principal principal data's request furthermore indemnifiers liability towards the indemnity holder is primary where a surety's liability is secondary in guarantee so that's all for today i hope you will like this video and find it beneficial in your academic studies if you have any sort of curious questions in your mind please comment below and don't forget to like and subscribe my youtube channel till next video take care allah office