CA Foundation Exam > CA Foundation Questions > In contract of indemnity must be for _____a)f...
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In contract of indemnity must be for _____
- a)five parties
- b)agreement without consideration
- c)implied consideration
- d)lawful consideration and object
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
In contract of indemnity must be for _____a)five partiesb)agreement wi...
Contract of Indemnity
- Definition: A contract of indemnity is a contract where one party promises to compensate the other party for any loss or damage that may be incurred.
- Key Elements: A contract of indemnity must have certain key elements to be valid and enforceable.
Lawful Consideration and Object
- In a contract of indemnity, there must be a lawful consideration and object for the contract to be valid.
- The consideration must not be illegal, immoral, or against public policy.
- Both parties must agree to the terms of the contract willingly and with full understanding.
Void Agreements
- If a contract of indemnity lacks lawful consideration and object, it may be deemed void by the courts.
- Void agreements are not enforceable by law and do not hold any legal standing.
- It is important to ensure that all elements of a contract of indemnity are legally sound to avoid any disputes or issues in the future.
By ensuring that a contract of indemnity has lawful consideration and object, parties can protect themselves from potential losses and liabilities. It is essential to understand the legal requirements of such contracts to create a valid and enforceable agreement.
Most Upvoted Answer
In contract of indemnity must be for _____a)five partiesb)agreement wi...
Understanding Indemnity in Contracts
Indemnity is a fundamental concept in contract law, where one party agrees to compensate another for loss or damage incurred.
Lawful Consideration and Object
The correct answer is option 'D' because:
Conclusion
In summary, for a contract of indemnity to be valid, it must have lawful consideration and a lawful object. This ensures that the agreement is not only enforceable but also provides the necessary protection against potential losses.
Indemnity is a fundamental concept in contract law, where one party agrees to compensate another for loss or damage incurred.
Lawful Consideration and Object
The correct answer is option 'D' because:
- Lawful Consideration: In any valid contract, consideration refers to something of value that is exchanged between the parties. In indemnity contracts, the consideration must be lawful; this means it should not violate any laws or public policy.
- Lawful Object: Alongside consideration, the object of the contract must also be lawful. This ensures that the purpose of the indemnity agreement is not illegal or unethical.
- Legal Validity: Contracts that involve unlawful consideration or objects are void. Therefore, an indemnity contract must have both elements to be enforceable in a court of law.
- Protection Against Loss: The primary purpose of an indemnity contract is to protect one party from financial losses due to the actions or negligence of another. This protection is only valid if the contract is formed on lawful grounds.
Conclusion
In summary, for a contract of indemnity to be valid, it must have lawful consideration and a lawful object. This ensures that the agreement is not only enforceable but also provides the necessary protection against potential losses.
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In contract of indemnity must be for _____a)five partiesb)agreement without considerationc)implied considerationd)lawful consideration and objectCorrect answer is option 'D'. Can you explain this answer?
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In contract of indemnity must be for _____a)five partiesb)agreement without considerationc)implied considerationd)lawful consideration and objectCorrect answer is option 'D'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about In contract of indemnity must be for _____a)five partiesb)agreement without considerationc)implied considerationd)lawful consideration and objectCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In contract of indemnity must be for _____a)five partiesb)agreement without considerationc)implied considerationd)lawful consideration and objectCorrect answer is option 'D'. Can you explain this answer?.
In contract of indemnity must be for _____a)five partiesb)agreement without considerationc)implied considerationd)lawful consideration and objectCorrect answer is option 'D'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about In contract of indemnity must be for _____a)five partiesb)agreement without considerationc)implied considerationd)lawful consideration and objectCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In contract of indemnity must be for _____a)five partiesb)agreement without considerationc)implied considerationd)lawful consideration and objectCorrect answer is option 'D'. Can you explain this answer?.
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