Question

As per Section 125 of Indian Contract Act, 1872, Indemnity-holder acting within the scope of his authority is entitled to recover _____.

• A. All damages which he may be compelled to pay in any suit in respect of any matter to which the promise to indemnify apples
• B. All cost for defending or bringing any suit if worked as a prudent person
• C. All sums which he may have paid under the terms of any compromise of any such suit
• D. All of the above

Answer 1

The correct option is D All of the above

Section 125 of Indian Contract Law, 1872 states, "Rights of indemnity-holder when sued.—The promisee in a contract of indemnity, acting within the scope of his authority, is entitled to recover from the promisor— —The promisee in a contract of indemnity, acting within the scope of his authority, is entitled to recover from the promisor—"

(1) all damages which he may be compelled to pay in any suit in respect of any matter to which the promise to indemnify applies;

(2) all costs which he may be compelled to pay in any such suit if, in bringing or defending it, he did not contravene the orders of the promisor, and acted as it would have been prudent for him to act in the absence of any contract of indemnity, or if the promisor authorized him to bring or defend the suit;

(3) all sums which he may have paid under the terms of any compromise of any such suit, if the compromise was not contrary to the orders of the promisor, and was one which it would have been prudent for the promisee to make in the absence of any contract of indemnity, or if the promisor authorized him to compromise the suit.