Indemnity is a fundamental legal concept under contract law that
provides protection against financial losses, damages, or
liabilities. In India, indemnity is primarily governed by the
Indian Contract Act, 1872 ("Contract Act"), specifically
under Sections 124 and 125.
As per Section 124 of the Contract Act, a 'contract of
indemnity' is defined as "a contract by which one party
promises to save the other from loss caused to him by the conduct
of the promisor himself, or by the conduct of any other
person", whereas Section 125 allows the promisee in an
indemnity contract to recover damages, costs, and sums paid under
the compromise of any suit, from the promisor.
An indemnity is, generally provided in relation to the
representations, warranties and covenants provided by the
indemnifying party. While representations are statements of facts
made by one party to the other, warranties are assurances regarding
any future performance and guarantee that certain facts
