Question:
Indemnity contract is defined under:
Indemnity contract is defined under:
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An indemnity contract, defined under Section 124 of the Indian Contract Act, involves a promise to compensate for a loss or damage caused.
Updated On: Nov 5, 2025
- Section 124 of the Indian Contract Act
- Section 67 of the Indian Contract Act
- Section 127 of the Indian Contract Act
- Section 128 of the Indian Contract Act
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The Correct Option is A
Solution and Explanation
Step 1: Understanding Indemnity Contracts.
Section 124 of the Indian Contract Act defines an indemnity contract as a contract in which one party agrees to compensate the other for any loss or damage that arises out of a particular transaction or event. It is a promise to save the other party from loss or liability.
Step 2: Explanation of the options.
- (a) Section 124 of the Indian Contract Act: This is the correct answer, as it defines the concept of indemnity contracts.
- (b) Section 67 of the Indian Contract Act: This section deals with contracts of bailment and is unrelated to indemnity.
- (c) Section 127 of the Indian Contract Act: This section relates to the agreement of guarantee, not indemnity.
- (d) Section 128 of the Indian Contract Act: This section deals with the liability of a surety, not indemnity.
Step 3: Conclusion.
Thus, the correct answer is (a) Section 124 of the Indian Contract Act.
Section 124 of the Indian Contract Act defines an indemnity contract as a contract in which one party agrees to compensate the other for any loss or damage that arises out of a particular transaction or event. It is a promise to save the other party from loss or liability.
Step 2: Explanation of the options.
- (a) Section 124 of the Indian Contract Act: This is the correct answer, as it defines the concept of indemnity contracts.
- (b) Section 67 of the Indian Contract Act: This section deals with contracts of bailment and is unrelated to indemnity.
- (c) Section 127 of the Indian Contract Act: This section relates to the agreement of guarantee, not indemnity.
- (d) Section 128 of the Indian Contract Act: This section deals with the liability of a surety, not indemnity.
Step 3: Conclusion.
Thus, the correct answer is (a) Section 124 of the Indian Contract Act.
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