Party Claiming Damages Under Indemnity Clause

Introduction

The term indemnity comes from the Latin term "indemnis" which means uninjured or suffering no damages or loss. The term Indemnity always has a wider approach because it covers loss arising out of the action of a third party along with the party who has a direct contractual obligation. On the other hand, damages are always limited to the parties who were part of the contract. The core principle of indemnity is to return an individual to the situation/circumstances where he was before the breach occurred. Moreover, whenever it's related to money-related damages, in the case of Indemnity a grant might be more than the genuine adversity that happened and not exactly the real adversity that happened.