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Michael Haley and Bruce Baldwin discuss indemnity clauses in a tutorial focused on their definition and significance. Indemnity, as defined by Black's Law Dictionary, involves a duty to compensate for any losses, damages, or liabilities incurred by another party. The primary purpose of these clauses is to shift risk from one party to another. Indemnity clauses require one party to cover the costs associated with a specified type of claims, highlighting the rationale behind the decision to indemnify another party. The discussion sets the stage for understanding the complexities and implications of indemnity in business settings.