A contract of indemnity is defined as:
AA contract to save the other from loss caused by the conduct of the promisor himself or any other person
BA contract to perform the promise of another
CA contract to deliver goods to a bailee
DA contract to underwrite securities
Answer & Solution
Correct answer: A. A contract to save the other from loss caused by the conduct of the promisor himself or any other person
1. Section 124 of the Indian Contract Act, 1872 — a contract of indemnity is a contract by which one party promises to SAVE THE OTHER from loss caused by conduct of the promisor or any other person.
2. It is a contingent contract triggered by occurrence of loss.
3. Hence (B).
_Source: ICAI BoS CA Inter Paper 2 — Indian Contract Act 1872_