Template:Indemnity description: Difference between revisions

Nor is a (well-crafted) {{tag|indemnity}} broader or of less determinate scope than any other contractual claim. A good one should have a predictable and reasonable financial consequence: It might be to reimburse taxes or similar unavoidable expenses a merchant incurs in performing the contract, that it would not, but for that contract. The sky should not fall in under the weight of a well-proportioned {{tag|indemnity}}. It is a precision tool to allocate responsibility for a narrow risk, not a weapon of mass destruction.

Yes, I do. This is where things have gone awry. Many latter-day [[indemnities]] are not well-crafted at all. It is common for indemnities to catch every contingency under the sun: “any and all losses, costs and damages, howsoever arising, incurred or suffered in diligent performance of the contract”. A magnanimous recipient might let the [[indemnifier]] off those losses caused by its own [[negligence, fraud or wilful default]], but that’s another story.)