Right of indemnity-holder: recover damages, costs and compromise payments when acting within authority and prudently. Promisee in a contract of indemnity is entitled to recover from the promisor all damages paid in suits covered by the indemnity, and costs of litigation if the promisee acted within his authority, did not contravene the promisor's orders and acted prudently or with the promisor's authorisation; sums paid under a compromise are also recoverable if the compromise conformed to orders, was prudent, or was authorised by the promisor.