The making of an agreement with a bankrupt to compromise a provable debt does not constitute 'enforcing a remedy' within s 58(3)(a) of the Bankruptcy Act 1966 (Cth), though such an agreement creates no enforceable legal obligations. An indemnity clause triggered by 'default' in the performance of obligations requires legally enforceable obligations; where the underlying debtor is bankrupt and under no legal obligation, there can be no 'default' and the indemnity is not engaged. A clause preserving the enforceability of an indemnity notwithstanding unenforceability of underlying obligations does not enlarge the triggering conditions of the indemnity.
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