Updated on January 23, 2024Table of Contents
Indemnity is a legal obligation to compensate someone for damages or losses suffered as a result of negligence or breach of duty. It is a sum of money paid to a person who has been harmed, either financially or physically, by the actions of another person.
1. Express Indemnity:– Occurs when a person agrees to indemnify another person for specified damages or losses.- Examples: Contracts, warranties, and insurance policies.
2. Implied Indemnity:– Arises from certain legal relationships, such as employer-employee and landlord-tenant.- Examples: Employment law, product liability.
Indemnification is based on the principles of negligence and breach of duty. According to these principles, a person who owes a duty of care to another person and breaches that duty, may be held liable for any resulting damages.
Indemnity is a complex legal concept and the specific legal obligations and remedies may vary depending on jurisdiction. It is always recommended to seek legal advice in specific cases.
What is the basic concept of indemnity?
Indemnity is a promise to compensate for losses or damages.
What is an example of indemnity?
In property insurance, the insurer compensates the policyholder for damage, like fire loss.
What are the two types of indemnity?
Express indemnity (written in contracts) and implied indemnity (assumed by relationships).
What is indemnity in contract law?
It’s a contract clause where one party agrees to cover specific losses of the other.
What is an indemnity payment?
It’s a payment made to cover a loss or damage.
Table of Contents
Categories
Pocketful is an advanced trading platform that empowers traders with cutting-edge technology. We provide innovative tools and resources to make trading more accessible and practical.
