Mutual indemnity agreement

What is the general indemnity agreement? What does indemnity mean on a managing agency agreement? MUTUAL INDEMNITY AGREEMENT.

A hold harmless clause is a statement in a contract, specifying that one or both parties agree. A mutual indemnity clause is an agreement between two parties where both agree not to hold. A Party that is negligent or that breaches this Agreement agrees to indemnify, defend and hold the other Party harmless from liability resulting.

If your defect involves any other matter, the MIA will NOT apply. This mutual indemnity agreement presents the name of utility , title of authorized utility personnel, utility representative name, eligible customer-generator, electricity supplier name, title of authorized personnel, and the representative’s name. An indemnification provision, also known as a hold harmless provision, is a clause used in contracts to shift potential costs from one party to the other. In a mutual indemnification, both parties agree to compensate the other party for losses arising out of the agreement to the extent those losses are caused by the indemnifying partys breach of the contract. In a one-way indemnification, only one party provides this indemnity in favor of the other party.

The primary benefit of an indemnification provision is to protect the indemnified party against losses from third party claims related to the contract. They are typically used in agreements where the risks associated with a partys non-performance, breach, or misconduct are high. Indemnification provisions are generally heavily negotiated (and often heavily litigated) clauses.

For example, agreements that involve the sale of intellectual property rights often include an indemnification by the seller in order to protect the buyer against the potentially large liability associated with an infringement lawsuit by a third party. See full list on nolo. The following is an example of a basic mutual indemnification provision.

Remember, any indemnity must be tailored to your specific needs. Lets say you commission a writer to prepare a speech for you on a work-for-hire basis. Instead of delivering an original speech as promised under the contract, the writer incorporates passages from a speech by another person who then sues you for copyright infringement, claiming that his intellectual property was exploited without his consent.

Your agreement with the writer includes a representation and warranty that the work product provided under the contract is original. It also has a standard indemnification provision that promises to hold you harmless from any losses or damages, including attorney fees, incurred as a result of any breach of the agreement. Pursuant to the indemnity , the writer would be obligated to handle the legal defense related to the other writers intellectual property infringement lawsuit against you and cover all of the losses and expenses you incur as a result of the infringement claim.

You would want to include additional language depending on your circumstances. For example, an indemnification can be limited to specific third party claims (such as those related to a breach of warranty), or restricted to only those situations where a lawsuit has been filed or a final judgment has been rendered. If you are the party providing the indemnification, you will want to make sure the clause is as narrowly tailored as possible to protect against the specific risk it is intended to protect against.

There are certain exceptions however. Certain states also prohibit indemnification provisions that provide for punitive damages. Check all applicable laws before drafting an indemnity. Additionally, courts have commonly held that a plaintiff may not recover damages under an indemnity clause to the extent that the damages are an unforeseeable and improbable outcome of the other partys breach, negligence, or misconduct (unless it can be shown that the indemnifying party had knowledge of the relevant circumstances). They should be broad enough to sufficiently address the parties concerns, yet reasonable and equitable in all respects so that their enforceability is not called into question.

With one-way indemnification, only one party is indemnifie meaning only their losses would be covered. Comprehensive - Immediate Use. Instant Downloa Mail Paper Copy or Hard Copy Delivery, Start and Order Now! Secure Cloud Storage.

No Installation Required. For The Liability Release You Need. In a mutual indemnification , both parties agree to compensate the other party for losses arising out of the agreement to the extent those losses are caused by the indemnifying party’s breach of the contract. The basic steps to draft an indemnity bond are: Step 1: Accuracy of Details Any slippage or minor mistakes in the indemnification agreement may count as a criminal.

This is better because under a regular indemnity clause risk is assumed for any problems that occur. Under the mutual indemnity clause, you are only liable for problems that occur because of your own negligence.