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Indemnity can be treated as a sub-species of compensation and a Contract of Indemnity is a species of contracts. The obligation to indemnify is a voluntary obligation taken by the Indemnifier. The mere possibility of loss occurring will not make the indemnifier liable. The loss to the indemnity holder is essential, otherwise, the indemnifier cannot be held liable. Plus, the loss must arise due to the conduct of the indemnifier or any other person related. Strictly speaking this does not cover the acts of God; otherwise, various insurance transactions will be rendered untenable. Under Indian law, the definition of contract of indemnity is restricted to cases wherein the loss is caused by human agency. Losses from other causes are covered in other chapters of the Indian Contract Act, 1872.
Contract of Indemnity should have all the essentials of a valid contract like free consent, the legality of an object, etc. Consideration, in this case, can be anything done, or any promise made which serves as a motivation behind the contract. It is sufficient inducement that the person for whom the indemnifier has promised indemnity has received a benefit or that the indemnity holder has suffered an inconvenience of doing what the indemnifier asks. The indemnity may be for the loss which a party may sustain due to the conduct of the promisor himself or of any other person. As stated earlier, this provision restricts the scope of contracts of indemnity as it covers the loss caused by a human agency only, i.e., by the conduct of the promisor or of any other person. However, the general definition of the contract of indemnity is much wider and it also covers the losses caused by the acts other than human beings.
So, we can say that if one person promises to save other from the loss caused to him by the conduct of the promisor himself or by the conduct of any other person subject to the condition if promisee (indemnity holder) work within the scope of the promisor.
Q. B requests A to sell and deliver to him goods on credit. A agrees to do so, provided C will guarantee the payment of the price of the goods. C promises to guarantee the payment in consideration of A's promise to deliver the goods. With reference to the passage decide.
- a)The consideration is not sufficed as it cannot be said to have a value in the eyes of law.
- b)The consideration need not be in monetary terms.
- c)The consideration will only be valid if C enjoyed any interest in the transaction.
- d)Since C is a stranger to the contract any guarantee floating from his end won't qualify as good in the eyes of law.
Correct answer is option 'B'. Can you explain this answer?
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Indemnity can be treated as a sub-species of compensation and a Contr...
Understanding Consideration in Contracts
In the context of the passage, the scenario revolves around A, B, and C, where C guarantees the payment for goods sold by A to B. The correct answer is option 'B', indicating that consideration need not be in monetary terms. Here’s a detailed explanation:
Definition of Consideration
- Consideration refers to something of value that is exchanged between parties in a contract. It is a fundamental element that validates a contract.
Nature of Consideration
- The consideration does not have to be monetary. It can include benefits, services, or assurances that one party provides to another.
Example from the Scenario
- In this case, C's promise to guarantee payment does not require a monetary exchange. The consideration here is the assurance provided by C in exchange for A delivering goods to B.
Legal Perspective
- According to contract law, as long as there is a benefit or detriment arising from the agreement, it qualifies as valid consideration. This means that C’s guarantee is sufficient, even though he is not receiving direct monetary compensation.
Implications of the Answer
- By affirming that consideration need not be in monetary terms, it reinforces the flexibility of contract law. It acknowledges that various forms of value can underpin contractual agreements, promoting broader interpretations of what constitutes a valid contract.
In summary, option 'B' highlights the importance of understanding consideration beyond monetary value, allowing for diverse forms of contractual arrangements.
In the context of the passage, the scenario revolves around A, B, and C, where C guarantees the payment for goods sold by A to B. The correct answer is option 'B', indicating that consideration need not be in monetary terms. Here’s a detailed explanation:
Definition of Consideration
- Consideration refers to something of value that is exchanged between parties in a contract. It is a fundamental element that validates a contract.
Nature of Consideration
- The consideration does not have to be monetary. It can include benefits, services, or assurances that one party provides to another.
Example from the Scenario
- In this case, C's promise to guarantee payment does not require a monetary exchange. The consideration here is the assurance provided by C in exchange for A delivering goods to B.
Legal Perspective
- According to contract law, as long as there is a benefit or detriment arising from the agreement, it qualifies as valid consideration. This means that C’s guarantee is sufficient, even though he is not receiving direct monetary compensation.
Implications of the Answer
- By affirming that consideration need not be in monetary terms, it reinforces the flexibility of contract law. It acknowledges that various forms of value can underpin contractual agreements, promoting broader interpretations of what constitutes a valid contract.
In summary, option 'B' highlights the importance of understanding consideration beyond monetary value, allowing for diverse forms of contractual arrangements.
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Indemnity can be treated as a sub-species of compensation and a Contr...
Option (b) is the correct answer as by referring to 2nd paragraph 2nd line it has been stated that "Consideration, in this case, can be anything done, or any promise made which serves as a motivation behind the contract".
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Indemnity can be treated as a sub-species of compensation and a Contract of Indemnity is a species of contracts. The obligation to indemnify is a voluntary obligation taken by the Indemnifier. The mere possibility of loss occurring will not make the indemnifier liable. The loss to the indemnity holder is essential, otherwise, the indemnifier cannot be held liable. Plus, the loss must arise due to the conduct of the indemnifier or any other person related. Strictly speaking this does not cover the acts of God; otherwise, various insurance transactions will be rendered untenable. Under Indian law, the definition of contract of indemnity is restricted to cases wherein the loss is caused by human agency. Losses from other causes are covered in other chapters of the Indian Contract Act, 1872.Contract of Indemnity should have all the essentials of a valid contract like free consent, the legality of an object, etc. Consideration, in this case, can be anything done, or any promise made which serves as a motivation behind the contract. It is sufficient inducement that the person for whom the indemnifier has promised indemnity has received a benefit or that the indemnity holder has suffered an inconvenience of doing what the indemnifier asks. The indemnity may be for the loss which a party may sustain due to the conduct of the promisor himself or of any other person. As stated earlier, this provision restricts the scope of contracts of indemnity as it covers the loss caused by a human agency only, i.e., by the conduct of the promisor or of any other person. However, the general definition of the contract of indemnity is much wider and it also covers the losses caused by the acts other than human beings.So, we can say that if one person promises to save other from the loss caused to him by the conduct of the promisor himself or by the conduct of any other person subject to the condition if promisee (indemnity holder) work within the scope of the promisor.Q. B requests A to sell and deliver to him goods on credit. A agrees to do so, provided C will guarantee the payment of the price of the goods. C promises to guarantee the payment in consideration of A's promise to deliver the goods. With reference to the passage decide.a)The consideration is not sufficed as it cannot be said to have a value in the eyes of law.b)The consideration need not be in monetary terms.c)The consideration will only be valid if C enjoyed any interest in the transaction.d)Since C is a stranger to the contract any guarantee floating from his end won't qualify as good in the eyes of law.Correct answer is option 'B'. Can you explain this answer?
Question Description
Indemnity can be treated as a sub-species of compensation and a Contract of Indemnity is a species of contracts. The obligation to indemnify is a voluntary obligation taken by the Indemnifier. The mere possibility of loss occurring will not make the indemnifier liable. The loss to the indemnity holder is essential, otherwise, the indemnifier cannot be held liable. Plus, the loss must arise due to the conduct of the indemnifier or any other person related. Strictly speaking this does not cover the acts of God; otherwise, various insurance transactions will be rendered untenable. Under Indian law, the definition of contract of indemnity is restricted to cases wherein the loss is caused by human agency. Losses from other causes are covered in other chapters of the Indian Contract Act, 1872.Contract of Indemnity should have all the essentials of a valid contract like free consent, the legality of an object, etc. Consideration, in this case, can be anything done, or any promise made which serves as a motivation behind the contract. It is sufficient inducement that the person for whom the indemnifier has promised indemnity has received a benefit or that the indemnity holder has suffered an inconvenience of doing what the indemnifier asks. The indemnity may be for the loss which a party may sustain due to the conduct of the promisor himself or of any other person. As stated earlier, this provision restricts the scope of contracts of indemnity as it covers the loss caused by a human agency only, i.e., by the conduct of the promisor or of any other person. However, the general definition of the contract of indemnity is much wider and it also covers the losses caused by the acts other than human beings.So, we can say that if one person promises to save other from the loss caused to him by the conduct of the promisor himself or by the conduct of any other person subject to the condition if promisee (indemnity holder) work within the scope of the promisor.Q. B requests A to sell and deliver to him goods on credit. A agrees to do so, provided C will guarantee the payment of the price of the goods. C promises to guarantee the payment in consideration of A's promise to deliver the goods. With reference to the passage decide.a)The consideration is not sufficed as it cannot be said to have a value in the eyes of law.b)The consideration need not be in monetary terms.c)The consideration will only be valid if C enjoyed any interest in the transaction.d)Since C is a stranger to the contract any guarantee floating from his end won't qualify as good in the eyes of law.Correct answer is option 'B'. Can you explain this answer? for CLAT 2024 is part of CLAT preparation. The Question and answers have been prepared according to the CLAT exam syllabus. Information about Indemnity can be treated as a sub-species of compensation and a Contract of Indemnity is a species of contracts. The obligation to indemnify is a voluntary obligation taken by the Indemnifier. The mere possibility of loss occurring will not make the indemnifier liable. The loss to the indemnity holder is essential, otherwise, the indemnifier cannot be held liable. Plus, the loss must arise due to the conduct of the indemnifier or any other person related. Strictly speaking this does not cover the acts of God; otherwise, various insurance transactions will be rendered untenable. Under Indian law, the definition of contract of indemnity is restricted to cases wherein the loss is caused by human agency. Losses from other causes are covered in other chapters of the Indian Contract Act, 1872.Contract of Indemnity should have all the essentials of a valid contract like free consent, the legality of an object, etc. Consideration, in this case, can be anything done, or any promise made which serves as a motivation behind the contract. It is sufficient inducement that the person for whom the indemnifier has promised indemnity has received a benefit or that the indemnity holder has suffered an inconvenience of doing what the indemnifier asks. The indemnity may be for the loss which a party may sustain due to the conduct of the promisor himself or of any other person. As stated earlier, this provision restricts the scope of contracts of indemnity as it covers the loss caused by a human agency only, i.e., by the conduct of the promisor or of any other person. However, the general definition of the contract of indemnity is much wider and it also covers the losses caused by the acts other than human beings.So, we can say that if one person promises to save other from the loss caused to him by the conduct of the promisor himself or by the conduct of any other person subject to the condition if promisee (indemnity holder) work within the scope of the promisor.Q. B requests A to sell and deliver to him goods on credit. A agrees to do so, provided C will guarantee the payment of the price of the goods. C promises to guarantee the payment in consideration of A's promise to deliver the goods. With reference to the passage decide.a)The consideration is not sufficed as it cannot be said to have a value in the eyes of law.b)The consideration need not be in monetary terms.c)The consideration will only be valid if C enjoyed any interest in the transaction.d)Since C is a stranger to the contract any guarantee floating from his end won't qualify as good in the eyes of law.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CLAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Indemnity can be treated as a sub-species of compensation and a Contract of Indemnity is a species of contracts. The obligation to indemnify is a voluntary obligation taken by the Indemnifier. The mere possibility of loss occurring will not make the indemnifier liable. The loss to the indemnity holder is essential, otherwise, the indemnifier cannot be held liable. Plus, the loss must arise due to the conduct of the indemnifier or any other person related. Strictly speaking this does not cover the acts of God; otherwise, various insurance transactions will be rendered untenable. Under Indian law, the definition of contract of indemnity is restricted to cases wherein the loss is caused by human agency. Losses from other causes are covered in other chapters of the Indian Contract Act, 1872.Contract of Indemnity should have all the essentials of a valid contract like free consent, the legality of an object, etc. Consideration, in this case, can be anything done, or any promise made which serves as a motivation behind the contract. It is sufficient inducement that the person for whom the indemnifier has promised indemnity has received a benefit or that the indemnity holder has suffered an inconvenience of doing what the indemnifier asks. The indemnity may be for the loss which a party may sustain due to the conduct of the promisor himself or of any other person. As stated earlier, this provision restricts the scope of contracts of indemnity as it covers the loss caused by a human agency only, i.e., by the conduct of the promisor or of any other person. However, the general definition of the contract of indemnity is much wider and it also covers the losses caused by the acts other than human beings.So, we can say that if one person promises to save other from the loss caused to him by the conduct of the promisor himself or by the conduct of any other person subject to the condition if promisee (indemnity holder) work within the scope of the promisor.Q. B requests A to sell and deliver to him goods on credit. A agrees to do so, provided C will guarantee the payment of the price of the goods. C promises to guarantee the payment in consideration of A's promise to deliver the goods. With reference to the passage decide.a)The consideration is not sufficed as it cannot be said to have a value in the eyes of law.b)The consideration need not be in monetary terms.c)The consideration will only be valid if C enjoyed any interest in the transaction.d)Since C is a stranger to the contract any guarantee floating from his end won't qualify as good in the eyes of law.Correct answer is option 'B'. Can you explain this answer?.
Indemnity can be treated as a sub-species of compensation and a Contract of Indemnity is a species of contracts. The obligation to indemnify is a voluntary obligation taken by the Indemnifier. The mere possibility of loss occurring will not make the indemnifier liable. The loss to the indemnity holder is essential, otherwise, the indemnifier cannot be held liable. Plus, the loss must arise due to the conduct of the indemnifier or any other person related. Strictly speaking this does not cover the acts of God; otherwise, various insurance transactions will be rendered untenable. Under Indian law, the definition of contract of indemnity is restricted to cases wherein the loss is caused by human agency. Losses from other causes are covered in other chapters of the Indian Contract Act, 1872.Contract of Indemnity should have all the essentials of a valid contract like free consent, the legality of an object, etc. Consideration, in this case, can be anything done, or any promise made which serves as a motivation behind the contract. It is sufficient inducement that the person for whom the indemnifier has promised indemnity has received a benefit or that the indemnity holder has suffered an inconvenience of doing what the indemnifier asks. The indemnity may be for the loss which a party may sustain due to the conduct of the promisor himself or of any other person. As stated earlier, this provision restricts the scope of contracts of indemnity as it covers the loss caused by a human agency only, i.e., by the conduct of the promisor or of any other person. However, the general definition of the contract of indemnity is much wider and it also covers the losses caused by the acts other than human beings.So, we can say that if one person promises to save other from the loss caused to him by the conduct of the promisor himself or by the conduct of any other person subject to the condition if promisee (indemnity holder) work within the scope of the promisor.Q. B requests A to sell and deliver to him goods on credit. A agrees to do so, provided C will guarantee the payment of the price of the goods. C promises to guarantee the payment in consideration of A's promise to deliver the goods. With reference to the passage decide.a)The consideration is not sufficed as it cannot be said to have a value in the eyes of law.b)The consideration need not be in monetary terms.c)The consideration will only be valid if C enjoyed any interest in the transaction.d)Since C is a stranger to the contract any guarantee floating from his end won't qualify as good in the eyes of law.Correct answer is option 'B'. Can you explain this answer? for CLAT 2024 is part of CLAT preparation. The Question and answers have been prepared according to the CLAT exam syllabus. Information about Indemnity can be treated as a sub-species of compensation and a Contract of Indemnity is a species of contracts. The obligation to indemnify is a voluntary obligation taken by the Indemnifier. The mere possibility of loss occurring will not make the indemnifier liable. The loss to the indemnity holder is essential, otherwise, the indemnifier cannot be held liable. Plus, the loss must arise due to the conduct of the indemnifier or any other person related. Strictly speaking this does not cover the acts of God; otherwise, various insurance transactions will be rendered untenable. Under Indian law, the definition of contract of indemnity is restricted to cases wherein the loss is caused by human agency. Losses from other causes are covered in other chapters of the Indian Contract Act, 1872.Contract of Indemnity should have all the essentials of a valid contract like free consent, the legality of an object, etc. Consideration, in this case, can be anything done, or any promise made which serves as a motivation behind the contract. It is sufficient inducement that the person for whom the indemnifier has promised indemnity has received a benefit or that the indemnity holder has suffered an inconvenience of doing what the indemnifier asks. The indemnity may be for the loss which a party may sustain due to the conduct of the promisor himself or of any other person. As stated earlier, this provision restricts the scope of contracts of indemnity as it covers the loss caused by a human agency only, i.e., by the conduct of the promisor or of any other person. However, the general definition of the contract of indemnity is much wider and it also covers the losses caused by the acts other than human beings.So, we can say that if one person promises to save other from the loss caused to him by the conduct of the promisor himself or by the conduct of any other person subject to the condition if promisee (indemnity holder) work within the scope of the promisor.Q. B requests A to sell and deliver to him goods on credit. A agrees to do so, provided C will guarantee the payment of the price of the goods. C promises to guarantee the payment in consideration of A's promise to deliver the goods. With reference to the passage decide.a)The consideration is not sufficed as it cannot be said to have a value in the eyes of law.b)The consideration need not be in monetary terms.c)The consideration will only be valid if C enjoyed any interest in the transaction.d)Since C is a stranger to the contract any guarantee floating from his end won't qualify as good in the eyes of law.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CLAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Indemnity can be treated as a sub-species of compensation and a Contract of Indemnity is a species of contracts. The obligation to indemnify is a voluntary obligation taken by the Indemnifier. The mere possibility of loss occurring will not make the indemnifier liable. The loss to the indemnity holder is essential, otherwise, the indemnifier cannot be held liable. Plus, the loss must arise due to the conduct of the indemnifier or any other person related. Strictly speaking this does not cover the acts of God; otherwise, various insurance transactions will be rendered untenable. Under Indian law, the definition of contract of indemnity is restricted to cases wherein the loss is caused by human agency. Losses from other causes are covered in other chapters of the Indian Contract Act, 1872.Contract of Indemnity should have all the essentials of a valid contract like free consent, the legality of an object, etc. Consideration, in this case, can be anything done, or any promise made which serves as a motivation behind the contract. It is sufficient inducement that the person for whom the indemnifier has promised indemnity has received a benefit or that the indemnity holder has suffered an inconvenience of doing what the indemnifier asks. The indemnity may be for the loss which a party may sustain due to the conduct of the promisor himself or of any other person. As stated earlier, this provision restricts the scope of contracts of indemnity as it covers the loss caused by a human agency only, i.e., by the conduct of the promisor or of any other person. However, the general definition of the contract of indemnity is much wider and it also covers the losses caused by the acts other than human beings.So, we can say that if one person promises to save other from the loss caused to him by the conduct of the promisor himself or by the conduct of any other person subject to the condition if promisee (indemnity holder) work within the scope of the promisor.Q. B requests A to sell and deliver to him goods on credit. A agrees to do so, provided C will guarantee the payment of the price of the goods. C promises to guarantee the payment in consideration of A's promise to deliver the goods. With reference to the passage decide.a)The consideration is not sufficed as it cannot be said to have a value in the eyes of law.b)The consideration need not be in monetary terms.c)The consideration will only be valid if C enjoyed any interest in the transaction.d)Since C is a stranger to the contract any guarantee floating from his end won't qualify as good in the eyes of law.Correct answer is option 'B'. Can you explain this answer?.
Solutions for Indemnity can be treated as a sub-species of compensation and a Contract of Indemnity is a species of contracts. The obligation to indemnify is a voluntary obligation taken by the Indemnifier. The mere possibility of loss occurring will not make the indemnifier liable. The loss to the indemnity holder is essential, otherwise, the indemnifier cannot be held liable. Plus, the loss must arise due to the conduct of the indemnifier or any other person related. Strictly speaking this does not cover the acts of God; otherwise, various insurance transactions will be rendered untenable. Under Indian law, the definition of contract of indemnity is restricted to cases wherein the loss is caused by human agency. Losses from other causes are covered in other chapters of the Indian Contract Act, 1872.Contract of Indemnity should have all the essentials of a valid contract like free consent, the legality of an object, etc. Consideration, in this case, can be anything done, or any promise made which serves as a motivation behind the contract. It is sufficient inducement that the person for whom the indemnifier has promised indemnity has received a benefit or that the indemnity holder has suffered an inconvenience of doing what the indemnifier asks. The indemnity may be for the loss which a party may sustain due to the conduct of the promisor himself or of any other person. As stated earlier, this provision restricts the scope of contracts of indemnity as it covers the loss caused by a human agency only, i.e., by the conduct of the promisor or of any other person. However, the general definition of the contract of indemnity is much wider and it also covers the losses caused by the acts other than human beings.So, we can say that if one person promises to save other from the loss caused to him by the conduct of the promisor himself or by the conduct of any other person subject to the condition if promisee (indemnity holder) work within the scope of the promisor.Q. B requests A to sell and deliver to him goods on credit. A agrees to do so, provided C will guarantee the payment of the price of the goods. C promises to guarantee the payment in consideration of A's promise to deliver the goods. With reference to the passage decide.a)The consideration is not sufficed as it cannot be said to have a value in the eyes of law.b)The consideration need not be in monetary terms.c)The consideration will only be valid if C enjoyed any interest in the transaction.d)Since C is a stranger to the contract any guarantee floating from his end won't qualify as good in the eyes of law.Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for CLAT.
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Here you can find the meaning of Indemnity can be treated as a sub-species of compensation and a Contract of Indemnity is a species of contracts. The obligation to indemnify is a voluntary obligation taken by the Indemnifier. The mere possibility of loss occurring will not make the indemnifier liable. The loss to the indemnity holder is essential, otherwise, the indemnifier cannot be held liable. Plus, the loss must arise due to the conduct of the indemnifier or any other person related. Strictly speaking this does not cover the acts of God; otherwise, various insurance transactions will be rendered untenable. Under Indian law, the definition of contract of indemnity is restricted to cases wherein the loss is caused by human agency. Losses from other causes are covered in other chapters of the Indian Contract Act, 1872.Contract of Indemnity should have all the essentials of a valid contract like free consent, the legality of an object, etc. Consideration, in this case, can be anything done, or any promise made which serves as a motivation behind the contract. It is sufficient inducement that the person for whom the indemnifier has promised indemnity has received a benefit or that the indemnity holder has suffered an inconvenience of doing what the indemnifier asks. The indemnity may be for the loss which a party may sustain due to the conduct of the promisor himself or of any other person. As stated earlier, this provision restricts the scope of contracts of indemnity as it covers the loss caused by a human agency only, i.e., by the conduct of the promisor or of any other person. However, the general definition of the contract of indemnity is much wider and it also covers the losses caused by the acts other than human beings.So, we can say that if one person promises to save other from the loss caused to him by the conduct of the promisor himself or by the conduct of any other person subject to the condition if promisee (indemnity holder) work within the scope of the promisor.Q. B requests A to sell and deliver to him goods on credit. A agrees to do so, provided C will guarantee the payment of the price of the goods. C promises to guarantee the payment in consideration of A's promise to deliver the goods. With reference to the passage decide.a)The consideration is not sufficed as it cannot be said to have a value in the eyes of law.b)The consideration need not be in monetary terms.c)The consideration will only be valid if C enjoyed any interest in the transaction.d)Since C is a stranger to the contract any guarantee floating from his end won't qualify as good in the eyes of law.Correct answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Indemnity can be treated as a sub-species of compensation and a Contract of Indemnity is a species of contracts. The obligation to indemnify is a voluntary obligation taken by the Indemnifier. The mere possibility of loss occurring will not make the indemnifier liable. The loss to the indemnity holder is essential, otherwise, the indemnifier cannot be held liable. Plus, the loss must arise due to the conduct of the indemnifier or any other person related. Strictly speaking this does not cover the acts of God; otherwise, various insurance transactions will be rendered untenable. Under Indian law, the definition of contract of indemnity is restricted to cases wherein the loss is caused by human agency. Losses from other causes are covered in other chapters of the Indian Contract Act, 1872.Contract of Indemnity should have all the essentials of a valid contract like free consent, the legality of an object, etc. Consideration, in this case, can be anything done, or any promise made which serves as a motivation behind the contract. It is sufficient inducement that the person for whom the indemnifier has promised indemnity has received a benefit or that the indemnity holder has suffered an inconvenience of doing what the indemnifier asks. The indemnity may be for the loss which a party may sustain due to the conduct of the promisor himself or of any other person. As stated earlier, this provision restricts the scope of contracts of indemnity as it covers the loss caused by a human agency only, i.e., by the conduct of the promisor or of any other person. However, the general definition of the contract of indemnity is much wider and it also covers the losses caused by the acts other than human beings.So, we can say that if one person promises to save other from the loss caused to him by the conduct of the promisor himself or by the conduct of any other person subject to the condition if promisee (indemnity holder) work within the scope of the promisor.Q. B requests A to sell and deliver to him goods on credit. A agrees to do so, provided C will guarantee the payment of the price of the goods. C promises to guarantee the payment in consideration of A's promise to deliver the goods. With reference to the passage decide.a)The consideration is not sufficed as it cannot be said to have a value in the eyes of law.b)The consideration need not be in monetary terms.c)The consideration will only be valid if C enjoyed any interest in the transaction.d)Since C is a stranger to the contract any guarantee floating from his end won't qualify as good in the eyes of law.Correct answer is option 'B'. Can you explain this answer?, a detailed solution for Indemnity can be treated as a sub-species of compensation and a Contract of Indemnity is a species of contracts. The obligation to indemnify is a voluntary obligation taken by the Indemnifier. The mere possibility of loss occurring will not make the indemnifier liable. The loss to the indemnity holder is essential, otherwise, the indemnifier cannot be held liable. Plus, the loss must arise due to the conduct of the indemnifier or any other person related. Strictly speaking this does not cover the acts of God; otherwise, various insurance transactions will be rendered untenable. Under Indian law, the definition of contract of indemnity is restricted to cases wherein the loss is caused by human agency. Losses from other causes are covered in other chapters of the Indian Contract Act, 1872.Contract of Indemnity should have all the essentials of a valid contract like free consent, the legality of an object, etc. Consideration, in this case, can be anything done, or any promise made which serves as a motivation behind the contract. It is sufficient inducement that the person for whom the indemnifier has promised indemnity has received a benefit or that the indemnity holder has suffered an inconvenience of doing what the indemnifier asks. The indemnity may be for the loss which a party may sustain due to the conduct of the promisor himself or of any other person. As stated earlier, this provision restricts the scope of contracts of indemnity as it covers the loss caused by a human agency only, i.e., by the conduct of the promisor or of any other person. However, the general definition of the contract of indemnity is much wider and it also covers the losses caused by the acts other than human beings.So, we can say that if one person promises to save other from the loss caused to him by the conduct of the promisor himself or by the conduct of any other person subject to the condition if promisee (indemnity holder) work within the scope of the promisor.Q. B requests A to sell and deliver to him goods on credit. A agrees to do so, provided C will guarantee the payment of the price of the goods. C promises to guarantee the payment in consideration of A's promise to deliver the goods. With reference to the passage decide.a)The consideration is not sufficed as it cannot be said to have a value in the eyes of law.b)The consideration need not be in monetary terms.c)The consideration will only be valid if C enjoyed any interest in the transaction.d)Since C is a stranger to the contract any guarantee floating from his end won't qualify as good in the eyes of law.Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of Indemnity can be treated as a sub-species of compensation and a Contract of Indemnity is a species of contracts. The obligation to indemnify is a voluntary obligation taken by the Indemnifier. The mere possibility of loss occurring will not make the indemnifier liable. The loss to the indemnity holder is essential, otherwise, the indemnifier cannot be held liable. Plus, the loss must arise due to the conduct of the indemnifier or any other person related. Strictly speaking this does not cover the acts of God; otherwise, various insurance transactions will be rendered untenable. Under Indian law, the definition of contract of indemnity is restricted to cases wherein the loss is caused by human agency. Losses from other causes are covered in other chapters of the Indian Contract Act, 1872.Contract of Indemnity should have all the essentials of a valid contract like free consent, the legality of an object, etc. Consideration, in this case, can be anything done, or any promise made which serves as a motivation behind the contract. It is sufficient inducement that the person for whom the indemnifier has promised indemnity has received a benefit or that the indemnity holder has suffered an inconvenience of doing what the indemnifier asks. The indemnity may be for the loss which a party may sustain due to the conduct of the promisor himself or of any other person. As stated earlier, this provision restricts the scope of contracts of indemnity as it covers the loss caused by a human agency only, i.e., by the conduct of the promisor or of any other person. However, the general definition of the contract of indemnity is much wider and it also covers the losses caused by the acts other than human beings.So, we can say that if one person promises to save other from the loss caused to him by the conduct of the promisor himself or by the conduct of any other person subject to the condition if promisee (indemnity holder) work within the scope of the promisor.Q. B requests A to sell and deliver to him goods on credit. A agrees to do so, provided C will guarantee the payment of the price of the goods. C promises to guarantee the payment in consideration of A's promise to deliver the goods. With reference to the passage decide.a)The consideration is not sufficed as it cannot be said to have a value in the eyes of law.b)The consideration need not be in monetary terms.c)The consideration will only be valid if C enjoyed any interest in the transaction.d)Since C is a stranger to the contract any guarantee floating from his end won't qualify as good in the eyes of law.Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Indemnity can be treated as a sub-species of compensation and a Contract of Indemnity is a species of contracts. The obligation to indemnify is a voluntary obligation taken by the Indemnifier. The mere possibility of loss occurring will not make the indemnifier liable. The loss to the indemnity holder is essential, otherwise, the indemnifier cannot be held liable. Plus, the loss must arise due to the conduct of the indemnifier or any other person related. Strictly speaking this does not cover the acts of God; otherwise, various insurance transactions will be rendered untenable. Under Indian law, the definition of contract of indemnity is restricted to cases wherein the loss is caused by human agency. Losses from other causes are covered in other chapters of the Indian Contract Act, 1872.Contract of Indemnity should have all the essentials of a valid contract like free consent, the legality of an object, etc. Consideration, in this case, can be anything done, or any promise made which serves as a motivation behind the contract. It is sufficient inducement that the person for whom the indemnifier has promised indemnity has received a benefit or that the indemnity holder has suffered an inconvenience of doing what the indemnifier asks. The indemnity may be for the loss which a party may sustain due to the conduct of the promisor himself or of any other person. As stated earlier, this provision restricts the scope of contracts of indemnity as it covers the loss caused by a human agency only, i.e., by the conduct of the promisor or of any other person. However, the general definition of the contract of indemnity is much wider and it also covers the losses caused by the acts other than human beings.So, we can say that if one person promises to save other from the loss caused to him by the conduct of the promisor himself or by the conduct of any other person subject to the condition if promisee (indemnity holder) work within the scope of the promisor.Q. B requests A to sell and deliver to him goods on credit. A agrees to do so, provided C will guarantee the payment of the price of the goods. C promises to guarantee the payment in consideration of A's promise to deliver the goods. With reference to the passage decide.a)The consideration is not sufficed as it cannot be said to have a value in the eyes of law.b)The consideration need not be in monetary terms.c)The consideration will only be valid if C enjoyed any interest in the transaction.d)Since C is a stranger to the contract any guarantee floating from his end won't qualify as good in the eyes of law.Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice CLAT tests.
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