What is an example of indemnity?

What is an example of indemnity?

Indemnity is commonly included as a clause in contracts in which the actions or mistakes of one party may result in the other party being liable for damages. For example: A wheelchair manufacturer enters into an agreement with a large hospital to provide 500 wheelchairs at a discount price.

What does indemnity mean in simple terms?

Indemnity is a comprehensive form of insurance compensation for damages or loss. ... 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 indemnity in a contract?

An indemnity agreement is a contract that protect one party of a transaction from the risks or liabilities created by the other party of the transaction. Hold harmless agreement, no-fault agreement, release of liability, or waiver of liability are other terms for an indemnity agreement.‌

What is the legal meaning of indemnify?

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.

What are the types of indemnity?

Types of Indemnity

• Broad Indemnification. The Promisor promises to indemnify the Promisee against the negligence of all parties, including third parties, even if the third party is solely at fault.
• Intermediate Indemnification. ...
• Limited Indemnification.

What is the difference between indemnity and liable?

indemnity, the major difference is that a limited liability clause is all about how much liability one party can be assigned if something goes wrong with a contract. In contrast, an indemnity clause is all about which party will have to bear the cost of defending a legal claim.

Is indemnity the same as liability?

indemnity, the major difference is that a limited liability clause is all about how much liability one party can be assigned if something goes wrong with a contract. In contrast, an indemnity clause is all about which party will have to bear the cost of defending a legal claim.

What is the basic principle of indemnity?

Principle of Indemnity states that the insured shall be compensated appropriately for the losses caused to the goods by the insurer, only to the extent that the insurer does not make a profit out of the loss that occurred.

Is indemnity a legal term?

Indemnification is a legal agreement by one party to hold another party blameless – not liable – for potential losses or damages. ... By indemnifying the second party, the first party, in effect, agrees to pay for or make good any loss or damages that may occur.

How do I indemnify someone?

When you indemnify someone, you are taking responsibility for the negative consequences of whatever happened. In the legal context, it usually means taking responsibility if someone sues the other party for losses or damages.

What does indemnity mean in insurance terms?

• In law, to indemnify means to protect a party from suffering any losses. Indemnity is a form of compensation for losses or damages, often in relation to a legal contract. The term refers to both the pre-loss guarantee of compensation and the compensation itself. The most common type of indemnity is insurance.

What is the meaning doctrine of indemnity?

• Doctrine of Indemnity, therefore, is the rules that govern indemnity and those that have been developed and honed over the years so that they cover all eventualities. It also means that they are set in statute and so are clearly defined.

What is the meaning of the word indemnity?

• What is 'Indemnity'. Indemnity is compensation for damages or loss, and in the legal sense, it may also refer to an exemption from liability for damages. The concept of indemnity is based on a contractual agreement made between two parties, in which one party agrees to pay for potential losses or damages caused by the other party.

What is the legal definition of indemnity?

• Indemnity Law and Legal Definition. Indemnity is a right which insures to a person who, without active fault on his/her own part, has been compelled, by reason of some legal obligation, to pay damages occasioned by the initial negligence of another, and for which s/he himself is only secondarily liable.