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For example, agreements that involve the sale of intellectual property rights often include an indemnification by the seller in order to protect the buyer against the potentially large liability associated with an infringement lawsuit by a third party.
What is the meaning of indemnity protection?
Indemnification clauses can limit the liability of one party, reducing their financial exposure in the event of a loss or damage. Limiting their liability reduces their financial exposure and protects them against potential losses.
What does indemnification mean in legal terms?
An indemnity clause is a contractual clause providing that one party is responsible for any losses or damages arising from a certain event or set of circumstances. In effect, the indemnity clause shifts the risk of that event occurring from the indemnified party to the indemnifying party.
What is indemnification in cyber security?
Comment: An indemnification provision that addresses data breaches allows parties to allocate responsibility for the types of claims and costs typically associated with a partys data becoming compromised by an information security incident, regardless of the relative fault or ordinary negligence of the parties.
Is an indemnity a form of security?
The word indemnity means security or protection against a financial liability.
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What does indemnification protect against?
To indemnify, also known as indemnity or indemnification, means compensating a person for damages or losses they have incurred or will incur related to a specified accident, incident, or event.
What is indemnification protection?
Legal Protection Against Third-Party Claims If a third party (such as a customer, vendor, or partner) files a claim, an indemnification agreement can ensure that the indemnifying party covers legal expenses, settlements, or damages, reducing litigation risks for the indemnitee.
Related links
30-191 - Indemnity or performance bonds as security
Operating units may execute and deliver indemnity or performance bonds as required by the United States or the state as security or assurance for performance.
What does indemnification mean? The legal definition states to save harmless; to secure against loss or damage; to give security for the reimbursement of a
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