Editing Indemnity (section)

===Contract award===
In [[England and Wales]] an "indemnity" monetary award may form part of [[Rescission (contract law)|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-Hayne]]'',<ref>(1900) 82 LT 49</ref> in which a contaminated [[farm]] was sold. The [[contract]] made the buyers renovate the [[property|real estate]] and, the contamination incurred medical expenses for their manager, who had fallen ill. Once the [[contract]] was rescinded, the buyer could be indemnified for the cost of renovation as this was necessary to the [[contract]], but not the medical expenses as the [[contract]] did not require them to hire a manager. Were the sellers at [[fault (legal)|fault]], [[damages]] would clearly be available.

The distinction between indemnity and [[damages]] is subtle and may be differentiated by considering the roots of the [[law of obligations]]: how can money be paid if the [[defendant]] is not at fault? The [[contract]] before [[Rescission (contract law)|rescission]] is voidable but not void, so, for a period of time, there is a legal [[contract]]. During that time, both parties have legal obligation. If the [[contract]] is to be voided ''[[ab initio]]'' the obligations performed must also be [[payment|compensated]]. Therefore, the costs of indemnity arise from the (transient and performed) obligations of the claimant rather than a [[breach of contract|breach of obligation]] by the defendant.<ref name="Furmston">{{cite book |last1=Furmston |first1=Michael P.|title=Cheshire, Fifoot, and Furmston's Law of contract|date=2001 |publisher=Butterworths/LexisNexis |isbn=9780406947178 |edition=14th }}</ref>