BUSINESS ADMINISTRATION
BUSINESS LAW
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Sec 124
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Sec 122
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Sec 172
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Sec 182
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Detailed explanation-1: -Section 124 of the Indian Contract Act (1872) defines a ‘contract of indemnity. ‘ It states that when one party promises to compensate another against the losses incurred by them due to anything done or omitted to be done by the promisor, a contract of indemnity is said to be made between the parties.
Detailed explanation-2: -An indemnity holder holds the right to recover damages, costs incurred by him concerning the suit relating to the matter, and also the amount paid under the compromise of the suit. These rights are provided to him by Section 125 of the Indian Contract Act, 1872.
Detailed explanation-3: -124-238) :-These specific contracts are indemnity, Guarantee, Bailment, Pledge and Agency. Definitions :-1.-According to Pollock :-“ Every agreement and promise enforceable at law is a contract.” 2-According to Salmond :-“ A contract is an agreement creating and defining obligation between the parties.”