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In a contract of indemnity, the parties are:

ASurety, principal debtor, and creditor
BBailor and bailee
CPrincipal and agent
DIndemnifier (promisor) and indemnified (indemnity-holder)
Answer & Solution
Correct answer: D. Indemnifier (promisor) and indemnified (indemnity-holder)
1. A contract of indemnity has two parties only. 2. The promisor or indemnifier promises to bear the loss. 3. The promisee or indemnified is the one whose loss is covered. _Source: ICMAI BoS CMA Foundation Paper 1 (Business Laws), Module 2 §2.7 (Indemnity/Guarantee/Pledge/Agent), p. 91-99_
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