Friday, May 15, 2009

Rights and duties of indemnifier

Rights of the indemnifier:

The rights of the indemnity-holder are the duties of indemnifier, and duties of the indemnity-holder are the rights of the indemnifier. There are not prescribed any specific rights of the indemnifier either in Nepalese law or in Indian law. However, he is not liable for indemnity.

i. If indemnity-holder acts negligently.

ii. If indemnity-holder is acting with the intention of causing any loss or damage.

iii. If he is acting against the instructions of the other party (promisor).


Duties of indemnifier:
The duties of an indemnifier arise in the following circumstances:

i. There must be a loss in accordance with the contract to make the indemnifier liable.

ii. There must be an occurrence of the anticipated event. Without any occurrence of the prescribed event, there is no indemnity by the indemnifier.

iii. Where the right of indemnity is used by the indemnity-holder prudently and the instruction of the indemnifier is not contravened or when there is no breach of contract.

iv. If the costs demanded by the indemnifier are not caused by negligence, haphazard behaviour.

4 comments:

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