Page:United States Statutes at Large Volume 47 Part 1.djvu/1314

 1290 INDEMNITY. Definition: CR OSS REF EREN CES Past, p. 1291. Guaranty, see sections 1261 et seq. Post, p .1 294 Suretyship, see sections 1285 et seq. I Indemnity for future wrongful act void. SEC. 1252 . INDEMNITY FOR A FUTURE WRONGFUL ACT VOID.-An . agreemen t to indemnify a person against an act thereafte r to be done, is void, if the act be known by such person at the time of doing it to be unlawful. act past wrongful SEC. 1253. INDEMNITY FOR A PAST WRONGFUL ACT VALID .An agree- ment to indemnify a person against an act already done, is valid, even though the act was known to be wrongful, unless it was a felony. eem mnit y extends SEC. 1254. INDEMNITY EXTENDS TO ACTS OF AGENTS .-An agreement to indemnify against the acts of a certain person, applies not only to his acts and their consequences, but also to those of his agents. Indenuiltytosev~ral. SEC. 1255. INDEMNITY TO SEVERAL .-An agreement to indemnify several persons applies to each, unless a contrary intention appears. Person indemnifying, or sever- SEC. 1256 . PERSON IN DEMNIFYIN G LIABLE JOINTLY OR SEVERALLY li able jo intl y PERS ON I NDEM NIFI ED. --One who indemn ifies anot her ag ainst an act to be done by the latter is liable jointly with the person indemni- Ruses for interpret- fied, and sepa rately, to every person injured b y such a ct. ing agreement. SEC. 1257 . RULES FOR INTERP RETING AG REEMENT OF INDEMNITY : In the interpretation of a contract of indemnity the following rules are to be applied, unless a contrary intention appears 1. Upon an indemnity against liability, expressly, or in other equivalent terms, the person indemnified is entitled to recover upon becoming liable. 2 . Upon an indemnity against claims, or -demands, or damages, or costs, expressly, or in other equivalent terms the person indemni- fied is not entitled to recover without payment thereof. 3 . An indemnity against claims, or demands, or liability, expressly, or in other equivalent terms, embraces the costs of defense against such claims, demands, or liability incurred in good faith and in the exercise of a reasonable discretion. 4 . The person indemnifyi ng is bound, on request of .the person indemnified, to defend actions or proceedings brought against the latter in respect to the matters embraced by the indemnity, but the person indemnified has the right to engage in the conduct of such defenses, if he chooses to do so. 5. If, after request, the person indemnifying neglects to defend the person indemnified, a recovery against the latter suffered by him in good faith is conclusive in his favor against the former. 6. If the person indemnifying, whether -he is a principal or a surety in the agreement, has not reasonable notice of the action or proceeding against the person, indemnified, or is not allowed to con- trol its defense, judgment against the latter is only presumptive evidence. against the former. 7. A stipulation, that a judgment against the person indemnified shall be conclusive upon the person indemnifying, is inapplicable if he had a good defense upon the merits, which by want of ordinary care he failed to establish in the action. 72d C ONGRESS. SESS. II. CH. 128 . FEB RUA RY 27, 1933. CHAPTER 59.-INDEMNITY SEC. 1251-a. IN DEMNI TY, WH AT .- -Indemnit y is a co ntract by which one engages to save another from a legal consequence of the conduct of one of the parties, or of some other person.