In a commercial contract there are many clauses that are involved. These clauses lay rules and conditions upon which the parties involved act. If you are wondering what is indemnity clause meaning, this answer is for you. I will try and simplify the answer on what is an indemnification clause.
An indemnity clause is included in the contracts to ensure that the potential risks will be compensated for. In legal terms, it means a contractual obligation of one party to compensate another party due to the acts of the former.
Why are provisions in Indemnity Clauses Important?The indemnity clause allow the contracting party to:
Customize the amount of risk it is willing to undertake
Protect itself from damages and lawsuits
An indemnity clause covers several events such as:
Breach of contract
Negligence
Non-compliance with laws
negligence
The damages covered in the indemnity clause include:
Loss and Liability:In a business or commercial transaction, the indemnity clause covers all the losses and liabilities.
Claims:these are damages such as lawsuits filed by third party.
Causes of action:Causes of action include damages resulting from a right to seek relief.
This is all you should know about indemnity clause.
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What is an Indemnification Clause?
Janardhan
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3 Year
2021-07-20T14:16:22+00:00 2021-07-21T11:12:34+00:00Comment
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