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What is reciprocal indemnification?

A mutual indemnification clause, or a reciprocal indemnification clause, is a contractual clause found in contracts where the contracting parties agree to cover one anothers legal expenses in the event of a contractual bdocHub.

What does indemnity mean in simple terms?

Put simply, indemnity is a contractual agreement between two parties, where one party agrees to pay for potential losses or damages claimed by a third party.

What are indemnity provisions?

An indemnification provision allocates the risk and expense in the event of a bdocHub, default, or misconduct by one of the parties. By Jennifer Paley. An indemnification provision, also known as a hold harmless provision, is a clause used in contracts to shift potential costs from one party to the other.

What is an indemnity provision?

As discussed, an indemnity provision transfers risk from one party (called the indemnitee) to another party (called the indemnitor). Under an indemnity provision, the indemnitor agrees to reimburse the indemnitee for losses resulting from a claim or claims brought by a third-party.

What are the methods of indemnity?

The indemnification method is one way to calculate the amount owed by one counterparty to another in the case of the early termination of a swap. The indemnification method requires the at-fault counterparty to compensate the responsible counterparty for all losses and damages caused by the early termination.

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