CRITICAL ANALYSIS OF THE LAW OF INDEMNITY UNDER SECTION 124 AND SECTION 125 OF THE INDIAN CONTRACT ACT, 1872

AUTHOR – ANKITAA N. IYER, STUDENT AT SYMBIOSIS LAW SCHOOL, PUNE

BEST CITATION – ANKITAA N. IYER, CRITICAL ANALYSIS OF THE LAW OF INDEMNITY UNDER SECTION 124 AND SECTION 125 OF THE INDIAN CONTRACT ACT, 1872, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 4 (1) OF 2024, PG. 1671-1674, APIS – 3920 – 0001 & ISSN – 2583-2344.

INTRODUCTION

A contract entered into between two parties in which one promises to shield the other from loss is known as an indemnification contract.^[1] In these contracts, the party receiving the protection is referred to as the indemnity-holder or the indemnified, while the party saving from such damage is referred to as the indemnifier. The law of indemnity is enshrined in Section 124 and Section 125 of the Indian Contract Act, 1872^[2]. Such contracts are typically included in a clause with another instrument rather than being utilized individually. The Indian Contract Act of 1872 limits the scope by specifying the ‘contract of indemnification’ instead of ‘promise of indemnity’. This paper aims to throw some light on the limitation of the statute on the grounds of the scope within the ambit of the sections involved.

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[1] https://www.ijlmh.com/paper/identifying-the-gaps-issues-and-shortcomings-in-section-124-and-section-125-of-the-indian-contract-act-1872-and-recommending-solutions-to-fill-the-gaps-and-shortcomings/

[2] The Indian Contract Act, Act No.9, Imperial Legislative Council, (1872).