Indemnity: Difference between revisions
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{{Indemnity description}} | {{Indemnity description}} | ||
=== | ===Who uses them?=== | ||
*[[custodian|custodians]] and [[trustee]]s who hold assets, have neither the risk or reward of the transaction, but could still suffer liability just because they are legal holders of the assets; | |||
* | |||
*as a means of protecting an [[indemnified party]] against [[consequential loss]] that it could not otherwise recover against the [[indemnifying party]]. | *as a means of protecting an [[indemnified party]] against [[consequential loss]] that it could not otherwise recover against the [[indemnifying party]]. | ||
* | *A [[trustee]] wishing to negate the trustee equivalent of “[[ultra vires]]” where it acts beyond its powers. There the indemnity allows the trustee to be indemnified for that tis personal liability out of the trust’s assets. This is important not just for the trustee, it also negates any “{{t|ultra vires}}” effect against a [[bona fide]] third party without notice of the breach of trust. | ||
{{sa}} | {{sa}} |