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Under Section 125, an indemnity-holder acting within his authority can recover from the indemnifier all damages, all costs, and:
AA penalty fixed by the court
BAll sums paid under the terms of any compromise of the suit
CInterest at a statutory rate only
DNothing beyond the principal
Answer & Solution
Correct answer: B. All sums paid under the terms of any compromise of the suit
Section 125 entitles the indemnity-holder to recover damages, costs reasonably incurred, and sums paid under any compromise of the suit.
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