Strike point in a Indemnification Agreement - Online Editor

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How to strike point in the Indemnification Agreement

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In this video tutorial, Elizabeth Potts Weinstein discusses indemnifications, emphasizing their significance in contracts. Indemnification refers to compensating another party for loss, damage, or injury, akin to insurance. She highlights the rationale behind including an indemnification clause in contracts: one party often possesses more information or control in a transaction, and it is fair for that party to assume responsibility if issues arise. Using a hiring scenario as an example, she illustrates that the party with the greater control or knowledge should be accountable for potential damages or losses. Overall, the tutorial aims to clarify the meaning, importance, and considerations of indemnification clauses in business dealings.

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What are the three types of indemnification?

There are 3 levels of indemnification: broad form, intermediate form, and limited form. This requires the indemnitor to pay not only for its liabilities but also for the indemnitees liability whether the indemnitee is solely (i.e. 100%) at fault or partially at fault.

Which clauses should survive termination?

Clauses that normally survive termination include choice of law, jurisdiction, arbitration or dispute resolution. Limits and exclusions of liability normally survive termination too.

Do you need a survival clause in a contract?

Business owners can add a survival clause to their contract when they want specific warranties or liabilities to persist. However, since these clauses are commonly used with confidentiality agreements, these clauses are generally essential whenever intellectual property is involved.

What is the duty to defend indemnification clause?

To defend requires the indemnifying party to engage attorneys and manage litigation or other proceedings when a claim that is covered by the indemnification provision is brought against the indemnitee. This obligation includes defending, financing a defense, or reimbursing an indemnitee for defending a claim.

Should warranties survive termination?

Reps and warranties are often subject to varying survival periods set forth in a survival clause. For example, general reps and warranties as to the condition of the targets business, assets and operations e.g., financial statements, contracts, employees, insurance and permits are often subject to the shortest

How long does an indemnity survive?

In other words, the Indemnification Section specifies a statute of limitations (typically referred to as a Survival Period) for the claims that apply between the parties to the Purchase Agreement. 5-6 years if there isnt a specific statute of limitations under state law.

What are the essential elements of the contract of indemnity?

There must be an offer and acceptance. The contract must be entered into for a legal purpose. The contract must be entered for the purpose of protecting one from losses. The contract maybe express or implied from conduct.

Should indemnification survive termination?

Since a party might not become aware of these claims until after the contract termination, those indemnification provisions should survive termination. That way, a party faced with a claim months after contract termination still can pursue indemnification from the other party.

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Strike point in the Indemnification Agreement