★ Must-know
The indemnifier is the party who promises to compensate for the loss, while the indemnified or indemnity-holder is the party whose loss is to be made good.
Under the statutory definition, loss caused by an accident without human conduct or by an act of God is not covered by a contract of indemnity.
Further detail
1. Which situation falls within the statutory definition of a contract of indemnity?
2. In a contract of indemnity, who is responsible for promising compensation, and who receives protection against the loss?
3. Which loss is excluded from coverage under the statutory definition of indemnity?
What is a contract of indemnity?
A contract where one party promises to save the other from loss caused by the promisor or others under Section 124.
Who is the indemnifier in a contract of indemnity?
The party who promises to compensate for the loss.
Who is the indemnity-holder in a contract of indemnity?
The party whose loss is to be made good.
Does a contract of indemnity cover loss caused by an accident without human conduct?
No, such loss is not covered under the statutory definition.
Can a contract of indemnity be implied?
Yes, it may be express or implied.
What must a contract of indemnity satisfy?
The essentials of a valid contract.
It covers the core concepts of Contracts of Indemnity and Guarantee, organized by topic with the key definitions, explanations and takeaways, so it's easier to learn and remember.
Read the full study guide →The practice quiz has 28 multiple-choice questions, each with an explanation. Use it to check what you know and find your gaps.
Take the quiz (28 questions) →There are 62 flashcards on Contracts of Indemnity and Guarantee, with a question on the front and the answer on the back. Try to recall each answer before you flip, and let spaced repetition bring back the ones you miss.
See all 62 flashcards →Upload a PDF or paste your notes. Revizly writes a study guide, a practice quiz and flashcards in about a minute.