Indemnity Provisions - Dollar Exposure of the Indemnity regarding Baskets, Caps, and Ceilings: Fill out & sign online

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What is indemnity cap?

The indemnification cap refers to the financial limit or cap to which typically the seller is liable against any bdocHub of reps or warranties.

What is an example of an indemnity?

The most common example of indemnity in the financial sense is an insurance contract. For instance, in the case of home insurance, homeowners pay insurance to an insurance company in return for the homeowners being indemnified if the worst were to happen.

What is an indemnity basket?

Indemnity Basket Indemnification basket refers to the amount that damages or losses must exceed before a seller is liable for any indemnification payments. An indemnity basket requires the buyer to incur a certain amount of loss before it can seek indemnification from the seller.

What is a dollar one indemnity?

(With a tipping or dollar‑one basket, once the aggregate dollar amount of claims exceeds the agreed‑upon basket amount, the indemnifying party will be obligated to indemnify for the full basket amount (that is, from dollar one), as well as all damages or losses in excess of the basket amount.)

What is a basket in indemnity?

Indemnification basket refers to the amount that damages or losses must exceed before a seller is liable for any indemnification payments. An indemnity basket requires the buyer to incur a certain amount of loss before it can seek indemnification from the seller.

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