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Legal Forums » Compensation » What Is an Indemnity Clause?
Started Dec 04 2012, 15:50
Posts: 1473 |
Dec 04 2012, 15:50
An indemnity clause could be a clause during a contract that states that a celebration to the contract agrees to compensate the opposite party for any losses incurred as a results of the performance of the contract or in association with the contract. In some cases associate indemnity solely runs one way; for instance, Party A could comply with compensate Party B within the event of a retardant. However, it is also attainable for associate indemnity clause to travel each ways that, with each parties agreeing to pay compensation if liabilities or losses ar incurred.
The purpose of associate indemnity clause is to supply some protection to the opposite party. {in a|during a|in associate exceedingly|in a very} straightforward example of however an indemnity clause would possibly work, a corporation might rent associate freelance contractor to perform work. If the work wasn't done properly and therefore the company was sued as a result, the freelance contractor might be needed to compensate the corporate for the expense beneath associate indemnity clause.
Indemnity clauses will cowl a large vary of things and that they could also be worded during a style of ways that. several need money compensation, however they will conjointly need folks to exchange things which could be broken or broken. for instance, a provider might embrace associate indemnity clause noting that if any of the job instrumentation is broken at an occasion, the one that employed the provider can got to replace it.
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