
Indemnity Agreement
Indemnity Agreement
An indemnity agreement is a legal contract in which one party agrees to compensate another party for any losses, damages, or expenses incurred as a result of a specific event or circumstance. It is commonly used in business transactions and relationships to allocate risk and liability between the parties. An indemnity agreement typically includes a description of the indemnified event or circumstance, the scope and limitations of the indemnity, and the procedures for claiming and enforcing the indemnity. It may also include provisions for defense, settlement, and subrogation. Indemnity agreements are an important tool for businesses to manage their legal exposure and protect themselves from unexpected costs and liabilities. However, they should be carefully negotiated and drafted to ensure they are fair, reasonable, and enforceable, and that they align with the parties’ respective roles and responsibilities.