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Recompense for loss, damage, or injuries; restitution or reimbursement.

An indemnity contract arises when one individual takes on the obligation to pay for any loss or damage that has been or might be incurred by another individual. The right to indemnity and the duty to indemnify ordinarily stem from a contractual agreement, which generally protects against liability, loss, or damage.




n. the act of making someone "whole" (give equal to what they have lost) or protected from (insured against) any losses which have occurred or will occur. (See: indemnify)


noun act of holding harmless, amends, assurance against loss, compensation, full satisfaction, lex oblivionis, payment, protection against loss, recompense, recoupment, redemption, refund, remuneration, repayment, requitement, restitution, restoration, return, security, security against damage, secuuity against loss, setoff, vindication
Associated concepts: contract of indemnity, covenant of innemnity, indemnity against liability, indemnity against loss, indemnity agreement, indemnity bond, indemnity insurrnce, indemnity mortgage, indemnity policy, indemnity reinsurance, limitation of indemnity, subrogation
See also: award, bail, binder, clemency, collection, compensation, condonation, consideration, contribute, contribution, coverage, damages, expiation, guaranty, honorarium, indemnification, indemnify, insurance, pay, payment, pledge, recompense, recovery, reimbursement, remittance, remuneration, reparation, requital, reward, satisfaction, security, trover


an undertaking by one person to make good losses suffered by another. Frequently confused with guarantee, an indemnity is a primary obligation that is enforceable irrespective of whether the beneficiary could sue the person responsible for causing the loss. On the other hand, a guarantee is a secondary obligation to pay a specified or ascertainable sum should the primary debtor fail to do so; if the primary obligation is unenforceable, the guarantee cannot be sued upon. An agent has the right to be indemnified by his principal against all losses and liabilities incurred by him while acting within the scope of his agency.

INDEMNITY. That which is given to a person to prevent his suffering damage. 2 McCord, 279. Sometimes it signifies diminution; a tenant who has been interrupted in the enjoyment of his lease may require an indemnity from the lessor, that is, a reduction of his rent.
     2. It is a rule established in all just governments that, when private property is required for public, use, indemnity shall be given by the public to the owner. This is the case in the United States. See Code Civil, art. 545. See Damnification.
     3. Contracts made for the purpose of indemnifying a person for doing an act for which he could be indicted, or an agreement to, compensate a public officer for doing an act which is forbidden by law, or omitting to do one which the law commands, are absolutely void. But when the agreement with an officer was not to induce him to neglect his duty, but to test a legal right, as to indemnify him for not executing an execution, it was held to be good. 1 Bouv. Inst. n. 780.

References in periodicals archive ?
Unfortunately, for the operator, the court held that the service contract's indemnity clause was triggered only after the operator exhausted its contractually mandated insurance policy--the $500,000.
Having said that, employers would also be ill-advised to insert an indemnity clause that is arbitrarily limited, depriving it of all practical use to the employee.
Appointed agents' contracts with insurers often contain indemnity clauses, which can stipulate that the insurer pays for its agent's defense.
The club and the player included an indemnity clause in the contract which stipulated the amount of compensation, EUR 15,000,000, that would be payable by any party to the other in case that one would terminate his contract prematurely.
In those states that will enforce the portions of an indemnity clause that do not violate public policy, the addition of "permitted by law" or "compliance with the law" language may permit part of the agreement to stand.
At a minimum, an indemnity clause must state that the promising party will indemnify and hold harmless the promisee for all accidents and claims arising out of the promisor's use of the premises, activities or operations on behalf of the promisee, even if the accidents, claims or lawsuits were caused in part by the negligence or conduct of the promisee.
Illinois courts have held that an indemnity clause (when properly limited to exclude one's own negligence) shall be interpreted to waive a party's Workers' Compensation protection and thereby expose that party to unlimited contribution under the Contribution Act.
He insisted an indemnity clause in the controversial 2002 compensation deal struck between the Government and 18 religious orders did not mean rapists and abusers could not be prosecuted.
Indeed, one clause, the "Patent Indemnity Clause," transfers liability to compensate the patent owner on to the contractor.
Obviously, if the work is very short term, a temp is likely to be the best option, but you could ask the agency for an indemnity clause against claims from either the worker or HMRC.
As most legal assistance practitioners understand, where the servicemember's military retired pay is divided under the terms of a separation agreement or court order, either of those documents are likely to contain an indemnity clause.
Doctors should make sure there is an indemnity clause in the contract between them and the sponsor/contract research organization, he said.