(a) Luna hereby grants Customer the following limited indemnification in connection with products purchased hereunder: Indemnification shall be deemed a transfer of risk between the parties and shall modify what they would otherwise be liable for or entitled to under a normal claim for damages. Britton and Time Solicitors can verify that the contract contains an insurance clause and that the type and amount of insurance are sufficient to meet any liability that may exist under the indemnification clause. We always ask for copies of insurance documents. John books a package tour through a travel agency that includes a hotel stay. As part of his package travel contract, there is a compensation clause that states that if John causes damage to his hotel room, he must compensate the hotel. There is also a guarantee in the contract signed by the travel agent, which states that if John is unable to compensate the hotel for the damage, the travel agency promises to compensate the hotel on John`s behalf. It is a written indemnification agreement that usually specifies the conditions that the parties concerned must comply with. This includes insurance indemnity contracts, construction contracts, agency contracts, etc. When drafting your indemnification clause, always keep in mind that the purpose of indemnification clauses is to protect a party from third party claims.
A compensation agreement is sometimes called a harmless holdback agreement because it is an attempt to ensure that one party does not attempt to sue another party for negligence. For example, if compensation is to be paid, the reimbursement takes the form of cash, repairs or replacement. The type of compensation depends entirely on the terms of the agreement. As with any other form of insurance, liability insurance covers the cost of a claim, including but not limited to court costs, fees and settlements. The amount covered by insurance depends on the specific agreement and the cost of insurance depends on many factors, including the history of claims. Common contracts with set-off clauses are as follows: If you are considering a contract, you will probably need a set-off clause tailored to your needs. Britton and Time Solicitors in Brighton and Hove draft individual terms and conditions for its clients. Our contract lawyers can help you avoid problems and disputes in the future and give both parties peace of mind.
There are other considerations to consider when entering into a written contract. For advice and preparation of written agreements, please contact us on the contact page or call 01273 726951. This is an indemnification obligation that does not result from a written agreement, but rather from the circumstances or conduct of the parties involved. A practical example is an agent-principal business relationship. If the contractor refuses to accept the goods provided to him by the representative, he may sell them to others; However, if the entrepreneur suffers damage during the sale, the customer is obliged to pay for it. Remuneration is usually presented in contracts, either in the form of a separate remuneration agreement or in the form of a set-off clause in a contract. This language is included in cases where it is possible that a part may be lost or damaged during the term of the contract or due to the circumstances of the contract. The right to compensation and the obligation to pay compensation usually result from a contractual agreement, which generally protects against liability, loss or damage. In this article (admittedly longer than usual), we look at what set-off clauses are, what they are supposed to achieve, how they can be abused, and how they should be treated. Most indemnification provisions require the indemnifying party to “indemnify and hold harmless” the indemnified party for certain liabilities.
In practice, these terms are usually matched and interpreted as a unit to mean “remuneration”. A indemnification clause is standard in most insurance contracts. However, what exactly is covered and to what extent depends on the specific agreement. Each given indemnification agreement has a so-called compensation period or a certain duration for which the payment is valid. Similarly, many contracts include a letter of indemnification that guarantees that both parties will comply with the terms of the contract (or compensation must be paid). An increasingly common example of a simple compensation clause is the registration documentation for 24-hour gyms, where often no staff members work while fitness visitors are on the gym floor. In these agreements, there are usually phrases such as “Use of fitness equipment is at your own risk and XYZ Gym assumes no responsibility for any injury or death caused by its use.” .
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