Indemnity AgreementAn indemnity agreement is an agreement whereby one party agrees to protect another party against certain future losses or claims.
For example, suppose Bob would like to enter into a contract with Nancy to build a playground, but Nancy is hesitant because of the potential future liability of such an endeavor. In this case, Bob may chose to indemnify Nancy against any future claims that may arise due to Nancy’s participation in the contract. Nancy is protected and Bob gets the participation of Nancy.
Indemnity agreements will memorialize this understanding and will also set out some of the basic terms of the indemnification, indemnification procedures, notice, etc. |
