Indemnity
A right to recover the whole of a sum for which one is liable from a third party, or a contractual promise to meet another person's loss. An indemnity is distinct from a right of contribution, which recovers only a share of the liability.
Independent editorial summary — not the official statute text. Read the official version on legislation.gov.uk.
The Civil Procedure Rules' glossary draws the distinction precisely by defining indemnity alongside its close relative, contribution. An indemnity is 'A right of someone to recover from a third party the whole amount which he himself is liable to pay.' Contribution, by contrast, is 'A right of someone to recover from a third person all or part of the amount which he himself is liable to pay.'
The difference in that wording is the whole point: a party with an indemnity can pass on the entirety of a liability to the person who agreed to bear it, whereas a party who only has a right of contribution may recover just a proportionate share from someone who is also responsible. Both rights commonly arise between defendants in the same proceedings — for example where a defendant who has been found liable to a claimant seeks to recover from a co-defendant or a third party who was truly responsible for the loss.
Related terms
Official sources
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