Deepika - Contracts 2 -Q1

1. What are the provisions related to Indemnity under ICA?

• S.123 & s.124

• S.124 & s.125

• S.126 & s.127

• S.123 & s.124

Answer explanation

Correct Answer : s.124 & s.125

2. A contract of Indemnity can be enforced only if there exist an

(a)  

3. The contract of guarantee consist of the following parties namely -

• PD, Surety & Creditor

• Creditor, PD & indemnifier

• Indemnifier, Indemnity holder and surety

• Creditor and surety

The dictum in the famous case of Ganjan Moreshwar v. Moreshwar Madhan, 1942 says -

Answer explanation

A Indemnity contract can be enforced by ID even before actual loss if there is an absolute liability existing.

In a contract of Guarantee , the surety need not be liable if the material facts related to the transaction are

• Fraudulent and Misrepresented

• Mistaken and.Misrepresented

• Mistaken and Concealed

• Misrepresented or Concealed

There are 3 rights given to an Indemnity holder under s.125 of ICA . These are

Answer explanation

1. Right to all damages compelled to pay in a suit filed to defend or deal with a case

2. Right to costs in such suits

3. Right to get all damages paid in case of settlement or compromise

Contract of Guarantee is defined under the following provision of ICA

• S.135

• S.134

• S.121

• None of the above