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A contracts to save B against the consequences of any proceedings, which C may take against B in respect of a certain sum of 500 rupees. This is a: (a) Contract of guarantee (b) Quasi contract (c) Contract of indemnity (d) Void contract
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Contract of Indemnity Section 124 of Indian Contract Act defines â??Contract of indemnityâ?? along with example in the act.â??A contract by which 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, is called a â??contract of indemnity.â?? â??A contract by which 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, is called a â??contract of indemnity.â??" Illustration A contracts to indemnify B against the consequences of any proceedings which C may take against B in respect of a certain sum of 200 rupees. This is a contract of indemnity. "
Thread Starter
Divy DegdaIn module this an example of contact of indemnity pg 1.3 But in MTP April -2021 answer is contract of guarantee
Even i asked my faculty about this question. Mam said that this is related to contract of guarantee not a indemnified contract...icai material may be that point is error
Thread Starter
Divy DegdaBut in contract of guarantee there must principal debt there no debt so I think MTP may be wrong!
Let's see sister any faculty will help us.
Thread Starter
Divy DegdaBut in contract of guarantee there must principal debt there no debt so I think MTP may be wrong!
can you share the question from MTP- April2021 you were referring to
Balachandar S
Thanks u mam
kindly go through the difference between contract of guarantee and indemnity for better understanding in icai module.
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