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Which section of the Indian Contract Act, 1872 defines a contract of indemnity?

Section 124 defines indemnity as a promise to save another from loss caused by the promisor’s conduct or by another person’s conduct. Sections 125–127 address rights when…

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Which section of the Indian Contract Act, 1872 defines a contract of indemnity?

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Answer and explanation

Correct answer A

Section 124 defines indemnity as a promise to save another from loss caused by the promisor’s conduct or by another person’s conduct. Sections 125–127 address rights when sued, the definition of guarantee and consideration for guarantee respectively.

Option feedback

Option A

Section 124 defines a contract of indemnity.

Option B

Section 125 concerns the indemnity holder’s rights when sued.

Option C

Section 126 defines a contract of guarantee and identifies its parties.

Option D

Section 127 concerns consideration for a guarantee.

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