Question

A contract of 'indemnity' under the Indian Contract Act, 1872, has been defined in Section:

• A. 124
• B. 123
• C. 125
• D. 126(a)

Hint:

Indemnity = promise to protect against loss; defined in Section 124, rights in Section 125.

Answer 1

The Correct Option is A

Step 1: Definition.
Section 124 of the Indian Contract Act defines a contract of indemnity as "a contract by which one party promises to save the other from loss caused to him by the conduct of the promisor himself, or by the conduct of any other person."

Step 2: Related provisions.
- Section 125 deals with the rights of indemnity-holder.
- Sections 123 and 126 relate to guarantees, not indemnity.

Step 3: Conclusion.
Hence, the definition lies in Section 124.