Template:Indemnity description: Difference between revisions

===You keep saying “''well-crafted'' [[indemnity]]”===

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.

In any case, such a wide indemnity suggests your counterpart has not grasped the fundamentals of the commercial bargain: [[Indemnities]] are not meant for the ordinary costs naturally arising from one’s diligent performance of a contract — the ordinary vicissitudes of one’s day-to-day commercial existence. That is called ''[[consideration]]''. It is why the other fellow is making a bargain with you in the first place. You’re meant to just pay that, and be grateful.