Indemnity

Indemnity: generally, refers to compensation for a loss or liability. A claim for indemnity can arise by operation of law, for example in the law of agency, where the principle is liable to indemnity its agent, but can also be created by contract, such as payment guarantee and indemnity contract. Indemnities can be used in a variety of contexts, for example in intellectual property transactions, where the owner of intellectual property gives users an indemnity against loss that may be caused by defects in those rights. Other areas where indemnities often arise are share sales and property transactions.