Contract Of Indemnity And Recovery Of Damage

Manas Kumar, O.P Jindal University, Sonipat, India

ABSTRACT

A contract of indemnification is a two-party agreement in which one party agrees to protect the other from loss and hold the other party harmless. The phrase indemnity, which implies to render someone uninjured, derives from the Latin 'indemnis' A contract of indemnification essentially shifts the duty and burden for losses incidental to the stated contract from one party to another.

This principle of indemnity was initially defined in its implications in the English case of Adamson v. Jarvis1, in which the plaintiff sold certain livestock at the defendant's direction, and the circumstances afterward revealed that the cattle had never belonged to the defendant. The plaintiff sued the defendant for the loss because he acted in accordance with the direction given to him by the defendant in the indemnity contract. The Indian Lair outlines the indemnity contract, its nature, and the indemnity holder's rights under Sections 124 and 125 of the ICA. This study tries to shed some light on the limitations of the statute based on the scope within the ambit of the related parts and provides recommendations using the legal position of other jurisdictions that deal with English law.

Keywords: Indemnity, damage, insurance