Section 121 in The Indian Contract Act, 1872
[Right of seller as to rescission, on failure of buyer to pay price at time fixed.] Rep.by the Indian Sale of Goods Act, 1930 (3 of 1930), s. 65.
[Sale and transfer of lots sold by auction.] Rep. by s. 65, ibid.
[Effect of use, by seller, of pretended biddings to raise price.] Rep. by s. 65, ibid.
Title: "Contract of indemnity" defined
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, is called a "contract of indemnity".
A contracts to indemnify B against the consequences of any proceedings which C may take against B in respect of a certain sum of 200 rupees. This is a contract of indemnity.
Title: Rights of indemnity-holder when sued.
The promise in a contract of indemnity, acting within the scope of his authority, is entitled to recover from the promisor—
(1) all damages which he may be compelled to pay in any suit in respect of any matter to which the promise to indemnify applies;
(2) all costs which he may be compelled to pay in any such suit if, in bringing or defending it, he did not contravene the orders of the promisor, and acted as it would have been prudent for him to act in the absence of any contract of indemnity, or if the promisor authorized him to bring or defend the suit;
(3) all sums which he may have paid under the terms of any compromise of any such suit, if the compromise was not contrary to the orders of the promisor, and was one which it would have been prudent for the promisee to make in the absence of any contract of indemnity, or if the promisor authorized him to compromise the suit.