How do you indemnify someone?
To indemnify someone is to absolve that person from responsibility for damage or loss arising from a transaction. Indemnification is the act of not being held liable for or being protected from harm, loss, or damages, by shifting the liability to another party.
Is letter of indemnity legally binding?
The English High Court has recently decided that in certain circumstances a letter of indemnity issued by a charterer to a shipowner can be legally enforced and that in some cases even a letter of indemnity issued by a third party in favour of a charterer can be enforced by a shipowner.
What is indemnity answer in one sentence?
Definition: Indemnity means making compensation payments to one party by the other for the loss occurred. Description: Indemnity is based on a mutual contract between two parties (one insured and the other insurer) where one promises the other to compensate for the loss against payment of premiums.
How do you explain indemnity?
When the term indemnity is used in the legal sense, it may also refer to an exemption from liability for damages. Indemnity is a contractual agreement between two parties. In this arrangement, one party agrees to pay for potential losses or damages caused by another party.
What is a Type 1 indemnity agreement?
A Type I Clause is one that expressly and unequivocally provides that the subcontractor will indemnify the general contractor against the negligence of the general contractor.
What is the purpose of indemnity letter?
A letter of indemnity is often used in property as an important contractual agreement. It’s a legal document that assures one party against another, for any potential costs or financial losses.
Are LOIs enforceable?
In some cases, an LOI can be an enforceable agreement to negotiate in good faith toward a final agreement based, at least in part, on its stated terms. Even those LOIs that specifically say they are non-binding may, in fact, be binding.