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Template:Indemnity description: Difference between revisions
→What are fit topics for an indemnity then?
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====What are fit topics for an indemnity then?==== | ====What are fit topics for an indemnity then?==== | ||
Indemnities capture unexpected and | Indemnities capture unexpected and unwanted possibilities brought about by performance of the contract which ''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: | ||
*Events that arise from the perfidy of higher powers: changes in law, retrospective taxes, and unbudgeted cost blowouts which are levied on the [[indemnified party]] as a direct result of performing the contract, which it could not reasonably have anticipated or avoided, and which the commercial equity of the situation supports allocating other than where they would naturally fall. In this correspondent’s opinion, that is limited really to retrospectively imposed taxes. Allocation of other un-budgeted costs can be resolved by re-negotiation or termination. | *'''Retrospective tax events''': Events that arise from the perfidy of higher powers: changes in law, retrospective taxes, and unbudgeted cost blowouts which are levied on the [[indemnified party]] as a direct result of performing the contract, which it could not reasonably have anticipated or avoided, and which the commercial equity of the situation supports allocating other than where they would naturally fall. In this correspondent’s opinion, that is limited really to retrospectively imposed taxes. Allocation of other un-budgeted costs can be resolved by re-negotiation or termination. | ||
*Events that arise though the mendacity - though not the direct breach of contract - of the [[ | *'''Losses caused by the [[indemnifier]]’s malfeasance to a third party''': Events that arise though the mendacity - though not the direct breach of contract - of the [[indemnifier]]. These arise where the [[indemnifier]] has given a third party has an interest that, unbeknownst to [[indemnified party]], its performance of the contract abrogates. These a reasonable [[indemnifier]] should not resist, seeing as are within its gift to prevent, even though they don’t directly breach the contract. | ||
====How is an indemnity different from a breach of contract?==== | ====How is an indemnity different from a breach of contract?==== | ||