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Template:Indemnity description: Difference between revisions
→Many indemnities aren’t very well-crafter at all
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{{box|An indemnity is a precision tool for a narrow risk, not a weapon of mass destruction.}} | {{box|An indemnity is a precision tool for a narrow risk, not a weapon of mass destruction.}} | ||
====Many indemnities aren’t very well- | ====Many indemnities aren’t very well-crafted at all==== | ||
But this is where things have gone awry. Many latter-day indemnities are not articulated this way. It is common for indemnities to catch every contingency under the sun: The indemnifier is asked to cover “any and all losses, costs and damages, howsoever arising, incurred or suffered in diligent performance of the contract”. (An [[indemnified party]] showing uncommon largesse might let the [[indemnifier]] off those losses caused by its own [[negligence, fraud or wilful default]], but that’s another whole story.) | But this is where things have gone awry. Many latter-day indemnities are not articulated this way. It is common for indemnities to catch every contingency under the sun: The indemnifier is asked to cover “any and all losses, costs and damages, howsoever arising, incurred or suffered in diligent performance of the contract”. (An [[indemnified party]] showing uncommon largesse might let the [[indemnifier]] off those losses caused by its own [[negligence, fraud or wilful default]], but that’s another whole story.) | ||
In any case, if you’re asked for something as mad as that, refuse, for it implies your counterpart has not grasped the fundamentals of a commercial bargain: shouldering the losses, costs and damages naturally arising from the diligent performance of its contractual obligations is — well, it’s kind of the point. That is why you’re even at the table. | In any case, if you’re asked for something as mad as that, refuse, for it implies your counterpart has not grasped the fundamentals of a commercial bargain: shouldering the losses, costs and damages naturally arising from the diligent performance of its contractual obligations is — well, it’s kind of the point. That is why you’re even at the table. | ||
[[Indemnities]] are not meant for that. | [[Indemnities]] are not meant for that. | ||
====What are fit topics for an indemnity then?==== | |||
Indemnities capture unexpected and unlikely possibilities brought about by performance of the contract that ''ought'' not to arise, whose provenance is beyond the [[indemnified party]]’s control, but which ''do''. | |||
There are two flavours of these: | There are two flavours of these: | ||