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Indemnity: Difference between revisions
→Scope of losses
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===Scope of losses=== | ===Scope of losses=== | ||
*'''Direct losses as a result of [[breach of contract]]''': Needless to say<ref>Well, it ''should'' be needless to say, but the majority of the trust and agency services lawyers in the city need it said to them.</ref>, an [[indemnity]] is '''not''' required from a party to recover direct losses suffered as a result of [[breach of contract]] by that party: the innocent party has an ordinary action available for [[breach of contract]]. Asking for an indemnity for normal breach of contract makes you look slightly dense. | *'''Direct losses as a result of [[breach of contract]]''': Needless to say<ref>Well, it ''should'' be needless to say, but the majority of the trust and agency services lawyers in the city seem to need it said to them.</ref>, an [[indemnity]] is '''not''' required from a party to recover direct losses suffered as a result of [[breach of contract]] by that party: the innocent party has an ordinary action available for [[breach of contract]]. Asking for an indemnity for normal breach of contract makes you look slightly dense. | ||
*'''Other losses suffered by the [[indemnified party]]''': Indemnities may cover “{{tag|consequential losses}}” incurred by a party arising out of the contract even where they're unrelated to any action of the [[indemnifying party]]. However, the latter case opens the [[indemnifying party]] up to significant and indeterminate liability and it would be well advised to resist giving such an {{tag|indemnity}}. | *'''Other losses suffered by the [[indemnified party]]''': Indemnities may cover “{{tag|consequential losses}}” incurred by a party arising out of the contract even where they're unrelated to any action of the [[indemnifying party]]. However, the latter case opens the [[indemnifying party]] up to significant and indeterminate liability and it would be well advised to resist giving such an {{tag|indemnity}}. | ||