Here are some notes on indemnifiers and indemnified parties:
- Indemnifier: The indemnifier is the party who promises to indemnify the indemnified party for any losses that they incur.
- Indemnified party: The indemnified party is the party who is promised to be indemnified by the indemnifier.
- Contract of indemnity: A contract of indemnity is a legally binding agreement between the indemnifier and the indemnified party.
- Indemnification: Indemnification is the act of compensating someone for their losses.
In a contract of indemnity, the indemnifier promises to indemnify the indemnified party for any losses that they incur as a result of a specified event. The event that triggers the indemnification is known as the “indemnifying event.” The indemnifier is not liable for losses that are not caused by the indemnifying event.
The contract of indemnity must be in writing and must be signed by both parties. The contract must also specify the amount of the indemnity, the indemnifying event, and the time period during which the indemnity is valid.
The indemnifier is not liable for losses that are caused by the negligence of the indemnified party. However, the indemnifier may be liable for losses that are caused by the negligence of the indemnifier’s agents or employees.
The contract of indemnity can be terminated by either party at any time, but the indemnified party may still be entitled to indemnification for losses that they incurred before the termination of the contract.
Here are some examples of indemnifiers and indemnified parties:
- A company that sells a product may indemnify the buyer of the product for any losses that they incur if the product is defective.
- A company that provides a service may indemnify the customer of the service for any losses that they incur if the service is not performed properly.
- A company that leases property may indemnify the tenant of the property for any losses that they incur if the property is damaged.
The contract of indemnity is an important legal concept that can protect parties from financial losses. It is important to understand the terms of the contract of indemnity in order to ensure that you are adequately protected.