Indemnity | EPFL Graph Search

Are you an EPFL student looking for a semester project?

Work with us on data science and visualisation projects, and deploy your project as an app on top of GraphSearch.

In contract law, an indemnity is a contractual obligation of one party (the indemnitor) to compensate the loss incurred by another party (the indemnitee) due to the relevant acts of the indemnitor or any other party. The duty to indemnify is usually, but not always, coextensive with the contractual duty to "hold harmless" or "save harmless". In contrast, a "guarantee" is an obligation of one party (the guarantor) to another party to perform the promise of a relevant other party if that other party defaults. Indemnities form the basis of many insurance contracts; for example, a car owner may purchase different kinds of insurance as an indemnity for various kinds of loss arising from operation of the car, such as damage to the car itself, or medical expenses following an accident. In an agency context, a principal may be obligated to indemnify their agent for liabilities incurred while carrying out responsibilities under the relationship. While the events giving rise to an indemnity may be specified by contract, the actions that must be taken to compensate the injured party are largely unpredictable, and the maximum compensation is often expressly limited. Unfair Contract Terms Act 1977 Under section 4 of the Statute of Frauds (1677), a "guarantee" (an undertaking of secondary liability; to answer for another's default) must be evidenced in writing. No such formal requirement exists in respect of indemnities (involving the assumption of primary liability; to pay irrespective of another's default) which are enforceable even if made orally. Under current English law, indemnities must be clearly and precisely worded in the contract in order to be enforceable. The Unfair Contract Terms Act 1977 stated that a consumer cannot be made to unreasonably indemnify another for their breach of contract or negligence, though this section was repealed by the Consumer Rights Act 2015 schedule 4 paragraph 6. In England and Wales an "indemnity" monetary award may form part of rescission during an action of restitutio in integrum.

About this result

This page is automatically generated and may contain information that is not correct, complete, up-to-date, or relevant to your search query. The same applies to every other page on this website. Please make sure to verify the information with EPFL's official sources.

Related concepts (6)

Related lectures (4)

Surety

In finance, a surety ˈʃʊərɪti:, surety bond or guaranty involves a promise by one party to assume responsibility for the debt obligation of a borrower if that borrower defaults. Usually, a surety bond or surety is a promise by a surety or guarantor to pay one party (the obligee) a certain amount if a second party (the principal) fails to meet some obligation, such as fulfilling the terms of a contract. The surety bond protects the obligee against losses resulting from the principal's failure to meet the obligation.

War reparations

War reparations are compensation payments made after a war by one side to the other. They are intended to cover damage or injury inflicted during a war. Making one party pay a war indemnity is a common practice with a long history. Rome imposed large indemnities on Carthage after the First (Treaty of Lutatius) and Second Punic Wars. Some war reparations induced changes in monetary policy.

Warranty

In contract law, a warranty is a contractual assurance given by a seller to a buyer, for example confirming that the seller is the owner of the property being sold. A warranty is a term of a contract, but not usually a condition of the contract or an innominate term, meaning that it is a term "not going to the root of the contract", and therefore only entitles the innocent party to damages if it is breached, i.e. if the warranty is not true or the defaulting party does not perform the contract in accordance with the terms of the warranty.

Sales Contracts: Definition, Risks, and Remedies

Explores sales contracts, warranty, form requirements, representations, and warranties, and the legal implications of defects in purchased items.

Land Management and Property Law ENV-460: Land management and ground law

Explores the formal expropriation process, legal framework, compensation methods, and material expropriation conditions in land management and property law.

Transmission Systems: Gears and Belts

Explores the basics of transmission systems, including gears and belts, covering differentials, gearboxes, and various belt types.