An Indemnity is a sum paid by A to B by way of compensation for a particular loss suffered by B. The indemnifying party (A) may or may not be responsible for the loss suffered by the indemnified party (B).
Methods of indemnity:- a. Payment of cash b. Repairs c. Replacement d. Reinstatement

General & Legal Meaning

Indemnity in particular legal systems

Indemnity clauses
Indemnity in the common law of the UK may award indemnity as well as rescission during an action of Restitutio in integrum. The property and funds are exchanged but indemnity may be granted for costs necessarily incurred to the innocent party pursuant to the contract. The leading case is Whittington v Seale
See also: Restitutio in integrum
See also: Rescission
See also: damages

Contract Award

Freeing of slaves and servants
The nation that wins a war may insist on being paid compensations for the costs of the war, even after having been the creator of the war.

Following the Sino-Japanese War of 1894-95, the Treaty of Shimonoseki required that China pay Japan the sum of 200,000,000 taels (or liangs).