Which one of the following is a contract of indemnity?
Asked by: Verla Witting | Last update: January 26, 2026Score: 4.2/5 (35 votes)
Which of the following is a contract of indemnity?
Contract of Group Insurance, market Insurance & Property insurance is all contracts of Indemnity. These are indeed a contract of indemnity. As the following is noticed in both the contracts: Both are contingent on the happening of an event.
What is an example of an indemnity contract?
For example, A promises to deliver certain goods to B for Rs. 2,000 every month. C comes in and promises to indemnify B's losses if A fails to so deliver the goods. This is how B and C will enter into contractual obligations of indemnity.
What is an indemnification contract?
An indemnity agreement is a contract that protects one party of a transaction from the risks or liabilities created by the other party of the transaction. Hold harmless agreement, no-fault agreement, release of liability, or waiver of liability are other terms for an indemnity agreement.
Which insurance is a contract of indemnity?
Because the insurer does not promise to indemnify the insured for any loss on maturity or death. Instead, the insurer agrees to pay a sum assured in that case. Ans. Except for life assurance, every insurance contract is a contract of indemnification.
Contract of Indemnity [Indian Contract Act, 1872]
What type of insurance is indemnity?
Indemnity insurance is a type of insurance policy where the insurance company guarantees compensation for losses or damages sustained by a policyholder. Indemnity insurance is designed to protect professionals and business owners when found to be at fault for a specific event such as misjudgment.
Is an indemnity a contract?
An indemnity is a contractual agreement of one party (indemnifier) to compensate a loss to the other party (indemnity holder), due to the actions of the indemnitor or any other party.
Why is an indemnity contract important?
Indemnity is an important element of contracts because it is designed to punish a party who breaches the contract. Learn about the different types of indemnity and why they're essential. While Tami Kamin Meyer just celebrated 30 years of practicing law, she has been freelance writing and editing longer than that.
What is the indemnity bond?
In summary, an indemnity bond is a legal agreement that is used to protect an individual or entity from any potential losses or expenses that may arise from another party's actions or negligence.
What is an indemnity claim?
Indemnity Claims are the method by which a payer can claim their payment back under the Direct Debit Guarantee. The bank is obliged to offer an immediate refund in the event that a Direct Debit has been taken in error or without authority. This refund is then claimed back out of the Service User's (your) bank account.
What are examples indemnity insurance?
- Bookkeeper - Professional Negligence. The Insured worked as a bookkeeper for a company. ...
- IT Consultant - Breach of Confidentiality. ...
- IT Consultant - Loss of Data. ...
- Bookkeeper - Professional Error.
Who can be an agent?
( ACT NO. IX OF 1872 )
As between the principal and third persons any person may become an agent, but no person who is not of the age of majority and of sound mind can become an agent, so as to be responsible to his principal according to the provisions in that behalf herein contained.
What is a valid contract?
A valid contract is a written or expressed agreement between two parties to provide a product or service. A void contract is missing an element. In a voidable contract, there is an option for the parties to enforce the terms even though an element is missing, or some other issue exists with the terms.
Which is not a contract of indemnity MCQ?
Personal Accident is not a contract of indemnity. Type of insurance cover (such as property insurance, but not personal accident insurance) that only restores the insured to his or her original financial position.
What is indemnity also known as?
The word 'indemnity' finds its roots in the Latin word 'indemnis', which stands for 'unhurt' or 'free from loss'. Hence, indemnities are also referred to as 'hold harmless' agreements.
What is the general contract of indemnity?
A GIA is a standard document in the construction and surety industries. A surety company that issues a bond on behalf of a contractor or subcontractor almost invariably requires that its principal, the individuals who control the company and their spouses, and often affiliated companies execute the GIA.
How much is an indemnity bond?
What Do Indemnity Broker Bonds Cost? These bonds generally cost between 1-15% of the requirement bond amount. The percentage you must pay is based on your financial strength, e.g. personal credit, business financials, etc. If you're ready, get a free quote for your bond today.
What is the indemnity format?
(At present not less than Rs.80/- stamp paper) This deed of Indemnity executed by …….………………………… hereinafter referred to as 'Indemnifier' which expression shall, unless repugnant to the context or meaning thereof, include its successors, administrators, representative and assignees in favour of M/s.
What is indemnification of indemnity?
An indemnification provision serves as a contractual remedy to redress a party's (or third party's) financial loss suffered as a result of a claim, breach, or some other event or condition set forth in the provision.
What is an example of indemnity contract?
Example of Indemnity in Business
If the building sustains significant structural damages from fire, then the insurance company will indemnify the owner for the costs to repair by way of reimbursing the owner or by reconstructing the damaged areas using its own authorized contractors.
How to write an indemnity bond?
I/We hereby give an Undertaking cum Indemnity Bond as hereinafter appearing. I/We hereby agree and undertake that my/our Firm is not under any penal action such as Demotion, Suspension, Blacklisting, De-registration etc. by any Government, Semi Government and Government Undertakings etc.
What is an indemnity agreement?
Indemnity Agreement:
Although similar to a hold harmless agreement, an indemnity agreement is an arrangement whereby one party agrees to pay the other party for any damages regardless of who is at fault.
How do liquidated damages work?
Liquidated damages are an exact amount of money, or a set formula to calculate the amount of money, a party will owe if it breaches a contract , in order to compensate the injured party for its losses.
How to limit an indemnity?
Every effort should be made to tie your indemnity obligation to your negligent or intentional misconduct, but even if you must agree to indemnify the owner against risks arising from the lease or your occupancy, insertion of the words “to the extent” can narrow the scope of the indemnity agreement.
What is the indemnity value?
Indemnity value is often referred to as market value or present-day value. Sporting equipment and personal effects (shoes, phones, jewellery) are often insured for indemnity value because they tend to depreciate quite quickly.