Abstract

It is astonishing to see that only sections 124 and 125 of the Indian Contract Act of 1872 address "contracts of indemnification," a crucial and often used legal document in the mercantile community. In the first section, indemnity is defined, and in the second, the rights of an indemnity bearer are discussed. The Indian Contract Act of 1872, which has only two parts, has certain significant concerns that are not directly addressed. Also, it appears that there hasn't been much of a divergence from the statutory language employed in these two parts based on judicial interpretation and subsequent developments in the law of indemnification. This paper tries to highlight such ambiguity which is faced by the court to properly interpret the indemnity contract.

Keywords