Chapter- 4 Contracts relating to Guarantee, Indemnity and Subrogation

Section 22 : Contract relating to indemnity

Estimated reading: 2 minutes 92 views

1) In case a person has entered into a contract relating to indemnity with a provision to pay any party to a contract or a third person for any loss or damage that may result from his/her actions while working under the direction of that party to that contract, he/she may realize as compensation all or any of the following amounts, subject to that contract:

(a) The indemnity amount mentioned in the contract;

(b) In case any loss or damage has been caused to a third person, the amount to be paid or borne in consideration thereof;

(c) The amount spent on the case filed or defended by him/her in connection with the contract relating to indemnity;

(d) The amount spent on the legal action if it becomes necessary to initiate such action for failure to pay the amounts mentioned in Clause (a) to (c).

2) Notwithstanding anything contained in sub-section (1), in case any person, while working under the direction of the other party, works negligently or with the intention of causing any loss or damage to that party or a third person, and in case the concerned party or the third person suffers a loss damage as a result thereof, he/she shall him/herself be responsible for such loss or damage.

Share this Law

Section 22 : Contract relating to indemnity

Or copy link

Discover Nepal's laws effortlessly. Our user-friendly platform simplifies legal understanding and accessibility, serving individuals throughout the country.