Page:United States Statutes at Large Volume 76A.djvu/312

–216– -216§ 3653. Validity with respect to past wrongful act An agreement 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. § 3654. Extension of indemnity 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 tho§e of his agents. § 3655. Indemnity to several persons An agreement to indemnify several persons applies to each, unless a contrary intention appears. § 3656. Joint or several liability One who indemnifies another against an act to be done by the latter is liable jointly with the person indemnified, and separately, to every person injured by the act. § 3657. Rules for interpreting agreement of indemnity I n 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 damagjes, or costs, expressly, or in other equivalent terms, the person indemnified 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 the claims, demands, or liability incurred in good faith and in the exercise of a reasonable discretion; (4) the person indemnifying shall, on request of the person indemnified, 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 the 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 nis 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 control its defense, judgment against the latter is only presumptive evidence against the former; or (7) a stipulation that a judgment against the person indemnified shall De conclusive upon the person indemnifying, is inapplicable if the person indemnified had a good defense upon the merits, which by want of ordinary care he failed to estaolish in the action. § 3658. Reimbursement of person indemnifying other Where one, at the request of another, engages to answer in damages, whether liquidated or unliquidated, for any violation of duty on the part of the latter, he is entitled to be reimbursed in the same manner as a surety for whatever he may pay. § 3659. Definition of bail Upon those contracts of indemnity which are taken in legal proceedings as security for the performance of an obligation imposed or declared by the tribunals, and known as undertakings or recognizances, the sureties are called bail.

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