indemnity

Vocabulary Word

Definition

'Indemnity' is about offering protection or safety, usually in terms of money. It could be like a company promising to cover your losses if something goes wrong with a product you bought from them.

Examples in Different Contexts

In contract negotiations, defining 'indemnity' is vital. A legal advisor might say, 'Clarifying indemnity clauses is essential to allocate risks appropriately and protect our company against unforeseen liabilities and potential claims.'

Practice Scenarios

Impact

Scenario:

Non-profits need to consider potential risks associated with their operations, especially when working with vulnerable groups or potentially hazardous situations.

Response:

So we need an indemnity clause to protect our non-profit from legal liabilities in such unforeseen circumstances.

Tech

Scenario:

Software licenses require close scrutiny. Any code taken from third-party resources needs to be carefully vetted to avoid potential legal disputes.

Response:

We should include an indemnity clause in the software licensing agreement, to protect our clients from third-party copyright claims.