Question

B, the proprietor of a newspaper, publishes at A's request, a libel upon C in the paper, and A agrees to indemnify B against the consequences of the publication, and all costs and damages of any action in respect thereof. B is sued by C and has to pay damages, and also incurs expenses. Decide in the light of Section 224 of the Indian Contract Act, 1872.

• A. A is not liable to B upon indemnity.
• B. A is liable to B upon indemnity.
• C. A is not liable to C upon indemnity.
• D. None of these

Hint:

Under Section 224 of the Indian Contract Act, the indemnifier (A) is liable to indemnify the indemnified party (B) for the consequences and costs of any legal action, as agreed.

Answer 1

The Correct Option is B

Step 1: Understanding the Question.
According to Section 224 of the Indian Contract Act, 1872, an indemnity agreement allows the indemnified party (B) to seek compensation from the indemnifying party (A) for losses incurred due to certain actions (in this case, the publication). Since A agreed to indemnify B, A is responsible for reimbursing B for the damages and expenses incurred in the lawsuit filed by C.
Step 2: Analysis of Options.
- (A) A is not liable to B upon indemnity: This is incorrect. A is liable to indemnify B since A agreed to do so.
- (B) A is liable to B upon indemnity: This is the correct option, as A specifically agreed to indemnify B against the consequences of the publication.
- (C) A is not liable to C upon indemnity: The indemnity is between A and B, so A is not liable to C. The agreement concerns indemnifying B.
- (D) None of these: This is incorrect because (B) is the correct answer.
Step 3: Conclusion.
Thus, the correct answer is (B) A is liable to B upon indemnity.