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Template:Indemnity description: Difference between revisions
→It is not better than a contract
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===What a (well-crafted) indemnity is not=== | ===What a (well-crafted) indemnity is not=== | ||
=====It is ''not'' better than a [[contract]]===== | =====It is ''not'' better than a [[contract]]===== | ||
An {{tag|indemnity}} is no ''better'' than a contractual claim. It ''is'' a contractual claim. It does not have a harsher accounting impact. Its [[regulatory capital|capital]] treatment is the same. You enforce it as you would a breach of contract: by suing the [[indemnifier]] for its failure to pay the indemnified amount. Since (if well crafted) it is a claim to pay a pre-defined (or at any rate [[deterministic]]) sum, proving your claim is not hard and a well-crafted indemnity is apt for [[summary judgment]]. But careful, [[Mediocre lawyer|counsel]]: aptness for [[summary judgment]] is not a magic property of all [[indemnities]]: it depends on how well you crafted yours. | An {{tag|indemnity}} is no ''better'' than a contractual claim. It ''is'' a contractual claim. It does not have a harsher accounting impact. Its [[regulatory capital|capital]] treatment is the same. You enforce it as you would a breach of contract: by suing the [[indemnifier]] for its failure to pay the indemnified amount. Since (if well crafted) it is a claim to pay a pre-defined (or at any rate [[deterministic]]) sum, proving your claim is not hard and a well-crafted indemnity is apt for [[summary judgment]]. But careful, [[Mediocre lawyer|counsel]]: aptness for [[summary judgment]] is not a magic property of all [[indemnities]]: it depends on how well you have crafted yours. | ||
=====It does ''not'' require a breach of contract===== | =====It does ''not'' require a breach of contract===== | ||