Question Scenario
Answer the following as per the provisions of the Indian Contract Act, 1872:
i) Unit 9
ii) State the rights of Indemnity-holder when sued.
Estimated Writing Time: 3 mins Try in Practice Mode
Source: 6)b)ii)2m,MDTP10, 6)b)ii)2m,MTP2,Jan2025, 6)b)ii)2m,Sept2024, ICAI Module2 Marks
Back to Law List Suggested Answer
1. Provisions of the Act / Applicable Law
Rights of Indemnity-holder when sued (Section 125 of the Indian Contract Act, 1872): The promisee in a contract of indemnity, acting within the scope of his authority, is entitled to recover from the promisor/indemnifier—
2. Analysis & Application of Facts
(a) all damages which he may be compelled to pay in any suit
(b) all costs which he may have been compelled to pay in bringing/ defending the suit and
(c) all sums which he may have paid under the terms of any compromise of suit.
Exam Strategy Tip
When answering law questions in the CA Foundation exam, follow the "Provision -> Facts -> Conclusion" structure for maximum marks. Ensure to state the relevant sections where applicable to earn bonus marks from the evaluator.
Ready to Practice More Law Cases?
Test your knowledge under timed conditions in our dedicated Writing Practice Mode. Get a feel for the real exam pressure.
Enter Writing Practice