Contract of Indemnity Bare Act

b) A with B a contract for the cultivation of an indigo crop on A‟ land and its delivery to B at a fixed price, and C guarantees the performance of this contract by A‟. B diverts a jet of water needed to irrigate A`s land, preventing it from lifting indigo. C is no longer responsible for its warranty. (b) A, B and C are guarantees for D in the amount of Rs 1,000 lent to E and there is a contract between A, B and C, according to which A must be supported up to one quarter, B up to one quarter and C up to half. E is in default of payment. Between the guarantees, A is obliged to pay 250 rupees, B 250 rupees and C 500 rupees. In the absence of a contract to the contrary, the death of the guarantor is considered a revocation of a permanent guarantee, insofar as this applies to future transactions. The liability of the guarantor is identical to that of the principal debtor, unless the contract provides otherwise. (2) the costs that he may be compelled to bear in the context of such an action if, in raising or defending himself, he did not violate the promisor`s orders and acted as he would have desirable to act in the absence of a compensation contract, or if the promisor authorized him to bring or defend the action; If the creditor enters into a contract for the principal debtor`s schedule with a third party and not with the principal debtor, the security is not paid. Section: 144.

Guarantee on a contractual basis that the creditor will act only after the adhesion of the co-guarantee. A contract in which one party promises to protect the other against losses suffered by it by the contract of the proprotant himself or by the conduct of another person is called a “compensation contract”. A “warranty contract” is a contract to fulfill the promise or fulfill the liability of a third party in the event of its failure. The person who gives the guarantee is called the “guarantor”; the person for whom the security is provided is referred to as the “principal debtor” and the person to whom the security is granted is referred to as the “creditor”. A guarantee may be given orally or in writing. Any deviation made without the consent of the guarantor in the terms of the contract between the principal debtor 1 [debtor] and the creditor releases the guarantor for post-gap transactions. Section: 133.Execution of the guarantee by way of derogation from the contract. The security is released by a contract between the creditor and the principal debtor, which compensates the principal debtor, or by an act or omission of the creditor, the legal consequence of which is the discharge of the principal debtor. A orders B to compensate B for the consequences of a proceeding that C may bring against B in the amount of Rs 200. This is a compensation agreement. If two persons enter into a contract with a third party for the assumption of a particular liability and also agree that one of them is liable only in the event of default of the other person, the third party not being a party to such a contract, the liability of each of these two persons to the third party under the first contract will not be affected by the existence of the second contract. although such a third party may have been aware of their existence.

c) A enters into a fixed price with B to build a house for B within a specified period of time, with B providing the necessary wood. C guarantees the performance of the contract by A‟. B refrains from supplying the wood. C is released from its guarantee. Where two or more persons are jointly and severally or jointly and severally co-authors of the same debt or right, under identical or different contracts and whether or not they know each other, the co-guarantors shall be required, in the absence of a contract to the contrary, to pay each in proportion to the totality of the debt — or part of it not yet paid by the principal debtor3. (e) C loan contracts to B in the amount of Rs 5,000 as at 1 March. A guaranteed refund. C pays the 5,000 rupees on January 1 to B. A is exempt from liability because the contract has been modified because C could sue B for the money before March 1. In each collateral arrangement, there is an implied promise by the principal debtor to indemnify the guarantor and the guarantor is entitled to recover from the principal debtor the amount he has lawfully paid under the guarantee, but not the amounts he has unduly paid. Section: 125. Rights of the holder of the indemnity in the event of a claim.

C, the holder of an outstanding bill of exchange drawn by A as guarantor of B and accepted by B, contracts with M to give time to B. A is not unloaded. (a) B contracts for the construction of a ship for C of a certain amount to be paid in instalments once the work has reached certain stages. A becomes guarantor vis-à-vis C of the proper performance of the contract by B‟. C will repay the last two payments to B in advance without A`s knowledge. A is relieved by this advance payment. The promisor in a compensation contract acting within the scope of his powers has the right to claim from the promisor – a guarantor is entitled to any security that the creditor has against the principal debtor at the time of the conclusion of the guarantee contract, whether or not the guarantor is aware of the existence of such security; and if the creditor or, without the consent of the guarantor, loses part of that security, the guarantor shall be paid up to the value of the security. (d) A grants C a continuous guarantee of Rs 3,000 for each oil delivered by C to B on credit. After that, B is embarrassed, and without the knowledge of contract A, B and C, that C B should continue to supply oil for ready money, and that the payments must be applied to the then existing debts between B and C. .