Abstract:
This research deals with a new problem encountered by the British Judicial system. It represents a fact subsequent to termination of the contract affecting the contractual parties in their rights for indemnity. The indemnity is reduced according to this case as it is not related to any of the parties. This case forced the British judiciary system to deviate from the fixed traditional rules in the system. The justification is explained in terms of the fact that the indemnity is assessed at the time the contract was breached. Thus, the estimation is based at the time the ruling was pronounced on the basis of the subsequent event of breaching the contract. The problem was explored and a number of indemnity rules in civil laws were discussed.