A cutting tool comprising an insert holder manufactured from a first material and a cutting insert manufactured from a second harder material, wherein the cutting insert is removably securable in the insert holder; the cutting insert comprising: upper and lower surfaces (48, 50) extending in a common longitudinal direction, with a peripheral side surface extending therebetween; a first plane parallel to the longitudinal direction and intersecting the upper and lower surfaces (48, 50); an upper peripheral edge formed at the intersection of the upper surface with the peripheral side surface, wherein at least one. cutting edge is formed on the upper peripheral edge; a pair of upper abutment surfaces formed on the upper surface; and at least one pair of lateral abutment surfaces formed on the upper surface, the insert holder comprising: an insert receiving slot opening out to a front end of the insert holder including upper and lower receiving slot surfaces (30, 32) extending in the longitudinal direction, wherein the upper receiving slot surface includes exactly one pair of lateral stopping surfaces and a pair of upper clamping surfaces, wherein: clamping contact occurs between the pair of upper abutment surfaces and the pair of upper clamping surfaces forward or rearward of the pair of lateral stopping surfaces, wherein: exactly one of the at least one pair of lateral abutment surfaces and the pair of lateral stopping surfaces intersect a third plane perpendicular to the longitudinal direction; first and second lateral abutment surface components (66, 68) of the exactly one of the at least one pair of lateral abutment surfaces are typically spaced apart by first and second gaps (G1, G2) from first and second stopping surface components (42, 44) of the pair of lateral stopping surfaces, respectively, in a cross-sectional view of the cutting tool in the third plane; and only in cases of a sufficiently large side load (Ft) on the cutting insert in a direction transverse to the first plane, one of the said first and second lateral abutment surface components (66, 68) contacts a corresponding one of the said first and second stopping surface components (42, 44), the cutting tool being characterised in that the cutting insert comprises exactly one pair of upper abutment surfaces and the insert holder includes exactly one pair of upper clamping surfaces and in that the exactly one pair of upper abutment surfaces and the at least one pair of lateral abutment surfaces are longitudinally separated. upper and lower surfaces (48, 50) extending in a common longitudinal direction, with a peripheral side surface extending therebetween; a first plane parallel to the longitudinal direction and intersecting the upper and lower surfaces (48, 50); an upper peripheral edge formed at the intersection of the upper surface with the peripheral side surface, wherein at least one. cutting edge is formed on the upper peripheral edge; a pair of upper abutment surfaces formed on the upper surface; and at least one pair of lateral abutment surfaces formed on the upper surface, an insert receiving slot opening out to a front end of the insert holder including upper and lower receiving slot surfaces (30, 32) extending in the longitudinal direction, wherein the upper receiving slot surface includes exactly one pair of lateral stopping surfaces and a pair of upper clamping surfaces, clamping contact occurs between the pair of upper abutment surfaces and the pair of upper clamping surfaces forward or rearward of the pair of lateral stopping surfaces, exactly one of the at least one pair of lateral abutment surfaces and the pair of lateral stopping surfaces intersect a third plane perpendicular to the longitudinal direction; first and second lateral abutment surface components (66, 68) of the exactly one of the at least one pair of lateral abutment surfaces are typically spaced apart by first and second gaps (G1, G2) from first and second stopping surface components (42, 44) of the pair of lateral stopping surfaces, respectively, in a cross-sectional view of the cutting tool in the third plane; and only in cases of a sufficiently large side load (Ft) on the cutting insert in a direction transverse to the first plane, one of the said first and second lateral abutment surface components (66, 68) contacts a corresponding one of the said first and second stopping surface components (42, 44),