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Summary: An indemnity agreement
is an agreement whereby one party agrees to protect another party
against certain future losses or claims. For example, suppose
Company A would like to enter into a contract with Company B to
build a swimming pool or some other project often associated with
risk and liability, but Company B is hesitant because of the
potential future liability of such projects. Company A may
indemnify Company B against any future claims that may arise due to
Company B's participation in the project. Company B is protected
and Company A gets the participation of Company B. Indemnity
agreements formalize this understanding between the companies and
will set out the terms of the
indemnification.
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Return On Investment:
Save 1 to 2 hours over preparing
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