Rights of indemnity holder

When parties expressly make a contract of indemnity , they can determine their own terms and conditions. However, sometimes they may not do so. In such a case, the indemnity holder can enforce the following rights against the indemnifier: 1) The indemnifier will have to pay damages which the indemnity holder will. The project will be limited to indemnity and the rights of indemnity-holder along with the duties of the indemnity - holder (because rights come with certain duties).

English law was taken for the study because the concept of indemnity in the Indian Contracts act came from the English law, Singapore and China also took the English law as the basis for enacting their indemnity clauses. Indemnifier’s duties will become the rights of the indemnity holder. A contract of guarantee is one where there are parties to contract, one is Principal Debtor another party is Creditor and third party is Surety. He has some rights against the indemnifier in accordance with the legal provisions incorporated under the Nepalese and Indian Contract Acts. This is a contract of indemnity.

But, the duties of the indemnity - holder have not been mentioned under the Acts. They are explained below. The contract of indemnity means a promise or statement of liability to pay compensation for a loss or for wrong in a transaction. LAW IS LIFE 0views. The indemnity holder can recover all the damages from the indemnifier which he is forced to pay in a suit proceeding.

Indemnity is the obligation, undertaken by one party. But only those damages will be indemnified against which. An indemnity holder (i.e. indemnified) acting within the scope of his authority is entitled to the following rights – 1. The indemnity - holder can enjoy different rights under the contract of indemnity by acting prudently, with a good intention, care and with the authority or according to the direction of the indemnifier. But the rights of the indemnifier are. These are as follows - The promisee in a contract of indemnity , acting within the scope of his authority, is entitled to recover from the promisor - i. Although the rights of the indemnity - holder have been mentioned under the Act, the rights of the indemnifier haven’t been mentioned expressly under the Act.

In the judicial pronouncement of Jaswant Singh v. Section of State, it was opined by the Court that the rights of the indemnifier are similar to the rights of a surety. It is a security against or compensation for loss etc. For instance, A contracts to indemnify B against the consequences of any proceedings which C may take against B in respect of a certain sum of 2rupees.

Rights of a surety. What are the rights of indemnity holder ? Define ” Indeminty” and explain its essential element. A contract of indemnity is a contract whereby 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. Damages: In the contract of indemnity , the indemnity holder has the right to recover from all those damages which he has been promised. Once the indemnity holder is compensated for the loss cause the indemnifier possesses all the rights to all the methods and resources that can save the indemnifier from loss.

The essence of the contract of indemnity is the loss to the party, i. The rights of the indemnity holder are: ü The damages which he may be compelled to pay regarding any suit with respect to any matter for which the promise to indemnify applies. Court did not look favourably upon indemnity or exoneration.