indemnity


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Related to indemnity: Indemnity clause, Indemnity insurance

Indemnity

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.

Cross-references

Damages.

indemnity

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)

indemnity

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

indemnity

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 ?
In evaluating the enforceability of an indemnity agreement, the threshold inquiry is whether the contract between the indemnitor and the indemnitee applies to the claim or loss involved.
To conceal the true financial condition of the companies, according to the plea agreement, Cohen transmitted fraudulent audited and unaudited financial statements for Indemnity-DC and Indemnity to the D.
Myth or Reality: Claim severity does not impact indemnity payments.
In the offshore oil and gas world, courts will generally hold that an insurance obligation trumps an indemnity obligation.
Federal agencies will classify a group plan as an indemnity product only if the plan pays a fixed amount of cash each day, each week or for some other period of time.
Consider the various ways that different states treat indemnity clauses in two common situations: lease of commercial premises, and construction contracts.
Accordingly, one of the primary benefits of reciprocal indemnity agreements can be a reduction in cost to both parties.
But despite that language and long after the Act was enacted, the drafters of construction contracts continued to include indemnity provisions.
the payment of this indemnity is equitable having regard to all the circumstances and, in particular, the commission lost by the commercial agent on the business transacted with such customers.
While a tax indemnity agreement might help an ex-spouse recover unexpected tax liabilities from the other ex-spouse, will it help the former avoid joint and several liability in the first place?
If they don't comprehend their responsibility, they should obtain advice to allow them to understand before agreeing to an indemnity undertaking.