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What is a corporate indemnity agreement?

An indemnity agreement is a contract that protects one party of a transaction from the risks or liabilities created by the other party of the transaction. Hold harmless agreement, no-fault agreement, release of liability, or waiver of liability are other terms for an indemnity agreement.

Does indemnification apply to direct claims?

Commercial contract indemnification provisions typically do not cover direct claims.

What is DO indemnification?

Indemnification is an undertaking by the company to defend the director and officer against the cost of certain claims, including legal fees, litigation awards and settlement costs.

What is the purpose of indemnity agreement?

Indemnity agreements, also known as indemnity clauses, play an integral role in contracts. Thats because they are designed to punish the nonperforming party and reassure the damaged one they will be reimbursed for losses caused by the errant entity.

What is permissive indemnification?

In most other situations, indemnification is permissive, meaning that the director or officer has not been successful on the merits but may be entitled to some form of indemnification based on the companys bylaws, charter or indemnification agreement.

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