Contractual Indemnity vs Assumption of Liability: What's the Difference?
contract general intermediate myth_bustCoaching institutes ke notes toh yeh bolte hain ki contractual indemnity and assumption of liability ek hi baat hai. Lekin yeh kahaani bahut zyaada simplified ki jaati hai. Section 124 of the Contract Act kha lete hain, "Where a contracting party undertakes to indemnify the other against the consequences of a third party's acts, or of a breach of a covenant by that third party, and that third party is, without the consent of the other, released from his liability in respect of such acts or breach, the contracting party undertaking to indemnify is discharged." Yeh kahaani keh rahi hai ki indemnity ke case me liability assumption ke liye consent zaroorat hai.
Lekin institutes ke notes kha lete hain ki assumption of liability ka koi connection nahi hai.
"Bhai, contractual indemnity and assumption of liability don't seem to have a clear dividing line. But to simplify, contractual indemnity is a promise by one party to compensate the other for any loss or damage arising from a breach of contract. Assumption of liability, on the other hand, goes a step further and explicitly states that a party will be responsible for the consequences of their actions.