Indemnity legal definition

What exactly does indemnity mean? Frequently confused with guarantee, an indemnity is a primary obligation that is enforceable irrespective of whether the beneficiary could sue the person responsible for causing the loss. To indemnify another party is to compensate that party for losses that that party has incurred or will incur as related to a specified incident.

Example: two parties settle a dispute over a contract, and one of them may agree to pay any claims which may arise from the contract, holding the other harmless. Indemnity means compensation in money or property for a loss suffered.

It is an agreement whereby one party agrees to secure another against an anticipated loss or damage. In its widest sense, indemnity means recompense for a loss or liability. Some indemnity claims arise by operation of law. Indemnity Claims means all third party claims or actions, threatened or file whether groundless, false, fraudulent or otherwise, that directly or indirectly relate to the subject matter of an indemnity , and the resulting losses, damages, expenses, attorneys’ fees and court costs, whether resulting from a settlement or otherwise, and whether such claims or actions are threatened or filed prior to or after the termination of this Agreement. An indemnity contract arises when one individual takes on the obligation to pay for any loss or damage that has been or might be incurred by another individual.

The right to indemnity and the duty to indemnify ordinarily stem from a contractual agreement, which generally protects against liability, loss, or damage. Definition of indemnity. When the term indemnity is used in the legal sense, it may also refer to an exemption from liability for damages.

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Browse our content today! TheAnswerHub is a top destination for finding online. The duty to indemnify is usually, but not always, coextensive with the contractual duty to hold harmless or save harmless. As a general rule, the amount of the indemnity should remain reasonable and should not be more than what the law would allow as damages for breach of contract. Security against damage,.

See the dictionary meaning, pronunciation, and sentence examples. Insurance and Indemnity. The most common use of the terms indemnify and indemnity occur in insurance policies. When purchasing an insurance policy, the insurance company agrees to indemnify the.

In a legal sense, it may also refer to an exemption from liability for damages. Indemnity is a comprehensive form of insurance compensation for damages or loss. Double Indemnity : A term of an insurance policy by which the insurance company promises to pay the insured or the beneficiary twice the amount of coverage if loss occurs due to a particular cause or set of circumstances. Double indemnity clauses are found most often in life insurance policies.

In the case of the accidental death of the.

In corporate law , an indemnity agreement serves to hold Board Directors and company executives free from personal liability if the company becomes sued or suffers damages. In that case, the general meaning of indemnity is “hold harmless. When you go over a contract, read the indemnity clause carefully, as well as the rest of the document.

Understanding Indemnity Clauses. Indemnity Obligations means each indemnity obligation arising under Section 8(b)(i) and 8(d) of the Merger Agreement and the amount of all monetary damages with respect to each other claim or remedy Buyer is permitted to pursue under Section 8(f) of the Merger Agreement, as determined by Buyer’s good faith estimate of the maximum amount such indemnity obligation or other claim may reasonably. The term comes from a late Middle English word meaning unhurt, free from loss.

The principles described in the terms indemnity and indemnify are interrelated so these terms are defined and explained together. Indemnity has the general meaning of hold harmless; that is, one party holds the other harmless for some loss or damage. In certain areas, such as the Philipines, it may refer to a form of restitution to a victim.

Pursuant to the indemnity , the writer would be obligated to handle the legal defense related to the other writer’s intellectual property infringement lawsuit against you and cover all of the losses and expenses you incur as a result of the infringement claim. Register and Subscribe now to work with legal documents online.