Critical Analysis of Contract of Indemnity

  • Divya Saini
  • Show Author Details
  • Divya Saini

    Student at Symbiosis Law School, Pune, India

  • img Download Full Paper


This article offers a thorough examination of indemnification agreements made in accordance with the Indian Contract Act of 1872. According to the definition of indemnity, which is “Assurance against loss,” indemnification is paying a person for losses or damages brought on by their own actions or those of another party. Sections 124 and 125 of the Act, which describe the characteristics of indemnity contracts and the rights of the indemnity holder, are examined in this research. However, it draws attention to the fact that there are no provisions defending the indemnifier's rights, which leaves room for legal ambiguity and gaps. The essay discusses a number of concerns, such as ambiguities in contract provisions, problems with reciprocatory contracts, issues with privity to contracts, and difficulties brought on by changes in the market. It also examines the need for better language to specify the indemnifier's advantages and makes suggestions for changes to Section 124's definition of loss and rights. The study also examines implied indemnity contracts and the difficulties they provide, highlighting the significance of transparency and equity for both parties. It emphasizes the fact that a simple indemnity provision cannot release a negligent party from liability. Lastly, the article advocates for an amendment to the Indian Contract Act to ensure equity and justice for both parties involved in indemnity contracts, as well as to resolve ambiguities and promote a fair resolution of liability issues.




International Journal of Law Management and Humanities, Volume 6, Issue 5, Page 1425 - 1433


Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution -NonCommercial 4.0 International (CC BY-NC 4.0) (, which permits remixing, adapting, and building upon the work for non-commercial use, provided the original work is properly cited.


Copyright © IJLMH 2021