ABSTRACT
The term indemnity is properly used to describe an obligation to indemnify one party to the contract against a claim which may be made against him by a third party. The problems relating to indemnities and insurance in respect of contracts for the purchase of plant and equipment or the carrying out of constructional work fall to be considered under two headings. First, those which arise out of defects in the plant supplied or work done, and second those which arise out of the employment on the purchaser's site of the contractor and his subcontractors. The conditions provide that the contractor is absolutely liable for injury to persons except to the extent that such injury arose from an act or default of the employer. If therefore the contractor is to be responsible for design the employer needs to ensure that he has appropriate insurance cover against his design liability.
