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hi Im Michele welcome back to finally revealed in this section weve been going over different types of terms that you may or may not know what they mean or how theyre used today I want to talk about another one of those terms and this is indemnification to indemnify or to provide an indemnification sometimes comes up in a context where youre signing a contract youre making a settlement or you are separating maybe in a business youre going your own ways or you are selling someone something or theyre selling something to you to indemnify someone means to in common terms cover their back means that you are going to step up for them and you are going to take care of them and any claims that are made against this person for the circumstance described for the product thats being sold or otherwise as is explained now to be responsible for the indemnification it should be clear what it is that you are indemnifying them against is it a something that if something goes wrong is it for a

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Who signs the indemnity agreement?

The two parties of the contract will sign the indemnification agreement. This means the indemnitee, or the person/business/company providing the good/service, will sign the document. The indemnifier, or the person/business/company receiving the good/service, will sign the document as well.

Who is responsible for indemnity?

In contract law, an indemnity is a contractual obligation of one party (the indemnitor) to compensate the loss incurred by another party (the indemnitee) due to the relevant acts of the indemnitor or any other party.

What is an indemnity agreement?

Although similar to a hold harmless agreement, an indemnity agreement is an arrangement whereby one party agrees to pay the other party for any damages regardless of who is at fault.

Who can write a letter of indemnity?

Such letters are traditionally drafted by third-party institutions like banks or insurance companies, which agree to pay financial restitution to one of the parties, should the other party fail to live up to its obligations.

Who gives a letter of indemnity?

Letters of indemnity are issued by a third-party institution, such as a bank or insurance company, to one or both parties of a business transaction. Being legal and binding documents, they need to be signed by a witness.

What are the two 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 happens if I indemnify someone?

To indemnify means to compensate someone for his/her harm or loss. In most contracts, an indemnification clause serves to compensate a party for harm or loss arising in connection with the other partys actions or failure to act. The intent is to shift liability away from one party, and on to the indemnifying party.

Does an indemnity need to be signed?

In contrast, there are no specific formal requirements in order to create a valid indemnity, it is not necessary that an indemnity is in writing or that it is signed.

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