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  • Sarah rents a car from a rental agency. While driving, she accidentally hits another vehicle, causing significa

Sarah rents a car from a rental agency. While driving, she accidentally hits another vehicle, causing significant damage. Which of the following options best describes Sarah’s liability under a contract of indemnity?

Option: 1

Sarah is not liable as it was an accident.


Option: 2

Sarah is liable only if she was driving recklessly.


Option: 3

Sarah is liable regardless of her driving behaviour.


Option: 4

Sarah is not liable as the rental agency should have insured the car.


Answers (1)

best_answer

Sarah is responsible for any loss or damage incurred by the other party (in this case, the rental agency). The liability of Sarah does not depend on whether the accident was intentional, accidental, or due to her driving behaviour.  Hence correct option c.

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