The correct answer is: A contract by which one party promises to save the other from loss caused to him by the contract of the promisor himself, or by the conduct of any other person.
A contract of indemnity is a type of contract in which one party agrees to reimburse another party for any losses that they may incur as a result of the first party’s actions. This type of contract is often used in business transactions, as it can help to protect both parties from financial losses.
For example, if a company hires a contractor to build a new office building, the company may require the contractor to sign a contract of indemnity. This would mean that the contractor would be responsible for any damages that occur as a result of the construction work, even if the damages are not the contractor’s fault.
Contracts of indemnity can also be used in personal relationships. For example, if a friend borrows your car and gets into an accident, you may be able to sue them for damages. However, if you had a contract of indemnity with your friend, they would be responsible for any damages that occur, even if the accident was not their fault.
Contracts of indemnity can be very useful in protecting both parties from financial losses. However, it is important to understand the terms of the contract before signing it, as you may be held responsible for damages that you did not cause.
Here is a brief explanation of each option:
- Option A: A contract by which one party promises to save any third party from loss caused to that party by the contract of the promisor himself, or by the conduct of any other person. This is not a contract of indemnity, as it does not involve the promisor promising to save the promisee from loss caused to them by the promisor’s own actions.
- Option B: A contract by which one party promises to provide insurance to the other in order to cover up any losses that may arise in the contract. This is not a contract of indemnity, as it involves the promisor providing insurance to the promisee, rather than promising to save them from loss.
- Option C: A contract by which one party promises to save the other from loss caused to him by the contract of the promisor himself, or by the conduct of any other person. This is a contract of indemnity, as it involves the promisor promising to save the promisee from loss caused to them by the promisor’s own actions.
- Option D: A contracting which one party appoints a guarantor to cover up any losses that may arise in the contract. This is not a contract of indemnity, as it involves the promisor appointing a guarantor to cover up losses, rather than promising to save the promisee from loss.