Site navigation

In contract of indemnity, the liability of the indemnifier is —

The indemnifier undertakes a primary obligation to protect the indemnity holder against the covered loss. Liability arises under that undertaking and its conditions, rather…

Choose your answer

In contract of indemnity, the liability of the indemnifier is —

Select one answer
Answer and explanation

Correct answer A

The indemnifier undertakes a primary obligation to protect the indemnity holder against the covered loss. Liability arises under that undertaking and its conditions, rather than as a promise to answer for a principal debtor’s default. The latter structure characterises a guarantee and the surety’s secondary obligation.

Practice for these exams

Related question papers

Related exam syllabi

Related questions in this topic