Construction of Contractual Indemnities – Out with the Old, In with the New
University of Sydney - Faculty of Law
November 30, 2010
Journal of Contract Law, Vol. 24, No. 2, pp. 182-195, 2008
Sydney Law School Research Paper No. 10/133
Indemnities can significantly alter the allocation of risk and responsibility in commercial contracts. Should they be the subject of different, and more stringent, principles of construction? Despite a broader trend towards commercial construction, the High Court of Australia in Andar Transport Pty Ltd v. Brambles Ltd appeared to indicate that indemnities, like guarantees, ought to be construed strictly and, in cases of ambiguity, against the indemnifying party. This article considers the effect of Andar and subsequent cases. It also considers whether, in Australia, the Canada SS rules may be relied upon in construing indemnities.
Number of Pages in PDF File: 14
Keywords: Contract, Indemnity, Indemnities, Construction, Canada SS rules
JEL Classification: K10, K12, K30
Date posted: December 2, 2010
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