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Template:Indemnity description: Difference between revisions
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{{box|An indemnity is nothing more than a contractual promise to pay a defined sum should a pre-agreed circumstance arise.}} | {{box|An indemnity is nothing more than a contractual promise to pay a defined sum should a pre-agreed circumstance arise.}} | ||
But, in the hands of finance lawyers, | But, in the hands of finance lawyers, things have got out of hand. Rather than prudently allocating unwanted outcomes, [[indemnities]] are seen, by those who seek them, as [[smart bombs]] that will surgically eliminate all evil whilst vouchsafing loved ones to the bosom of the Earth. To those asked for them, they have the hue of the closing stages of a Joseph Conrad novel. There is much misapprehension. Much Horror. Much Fear. Much Loathing. | ||
Much ignorance. | Much ignorance. | ||
====What an indemnity | ====What an indemnity is not==== | ||
Of itself, an {{tag|indemnity}} isn't ''better'' than a contractual claim. It ''is'' a contractual claim. Nor does it have a harsher accounting or [[regulatory capital|capital]] impact. You enforce it as you would any breach of contract: by suing to recover the indemnitor's failure to pay the indemnified amount. Since (if you've crafted it correctly) it is a claim to pay a pre-defined (or at any rate [[deterministic]]) sum, the elements you need to prove your claim are easily produced: a well-crafted indemnity is therefore apt for [[summary judgment]]. | Of itself, an {{tag|indemnity}} isn't ''better'' than a contractual claim. It ''is'' a contractual claim. Nor does it have a harsher accounting or [[regulatory capital|capital]] impact. You enforce it as you would any breach of contract: by suing to recover the indemnitor's failure to pay the indemnified amount. Since (if you've crafted it correctly) it is a claim to pay a pre-defined (or at any rate [[deterministic]]) sum, the elements you need to prove your claim are easily produced: a well-crafted indemnity is therefore apt for [[summary judgment]]. | ||