Types of Contract of Indemnity

 

There are mainly two types of Contract of indemnity which are :- 

a)     The Express Contract of Indemnity

When the contract of indemnity is written or orally consented, then such indemnity contracts are said to be Express Contract of Indemnity. An express contract is a contract in which the terms and conditions are clearly stated in words, either written or spoken.

Example: Ram signs a written agreement to sell his house to Sita for Rs. 50,00,000. Both parties sign the document. This is an express contract because the terms are clearly written.

b)     The Implied Contract of Indemnity 

When the contract of indemnity is applied by a statute or by a common law that is in existence, then such indemnity contracts are said to be Implied Contract of Indemnity.

Example: When a patient visits a doctor for treatment, there is an implied contract that the doctor will provide medical care and the patient will pay the fees.