Page 97 - DCOM103_COMMERCIAL_LAW

Commercial Law

Notes 9.5 Review Questions

1. Define the contract of ‘Indemnity’. Describe the rights of the indemnifier and the indemnity-

holder.
2. “Indemnity is not necessarily given by repayment after payment. Indemnity requires that

the party to be indemnified shall never be called upon to pay.” Discuss.
3. Distinguish between a contract of guarantee and a contract of indemnity.
4. Discuss the case Mary Coleiro vs. the state of NSW. Explain indemnity.
5. A agrees to indemnify B, a newspaper proprietor, against claims arising out of the libels
printed in the newspaper concerning a person of repute. Is this a valid agreement?
6. B appointed A as his agent to collect his rents and required him to execute a fi delity bond
in which C was a party. Sometime after the execution of the bond, C died. A committed
various acts of dishonesty after C’s death. Is C’s estate for loss caused to B?
7. A undertakes to build a house for B within a certain period, B supplying the necessary
materials. C guarantee performance of the contract. B fails to supply the necessary materials.
Discuss the position of C

Answers: Self Assessment

1. burden 2. Contract of indemnity 3. Continuing guarantee
4. Co-sureties

9.6 Further Readings

Books G. Vijayaragavan Iyengar (2007), Introduction to Banking, Excel Books, New Delhi,
India.
M.C. Kuchhal, “Business Law”, Vikas Publishing House.
N.D. Kapoor, “Elements of Mercantile Law”, Sultan Chand & Sons.
S.S. Gulshan, Business Law, Third Edition, 2006, Excel Books, New Delhi.

S.S. Gulshan, Mercantile Law, Third Edition, 2006, Excel Books, New Delhi.

Online links http://legalservicesindia.com/article/userarticles.php?aut_id=301

http://www.lawyersclubindia.com/articles/IS-Contract-of-Insurance-a-contract-
of-indemnity--3536.asp
http://www.scribd.com/doc/19575522/Contract-indemnity

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