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Template:Indemnity description: Difference between revisions
Template:Indemnity description (view source)
Revision as of 14:41, 6 September 2016
, 6 September 2016→It isn't better than a contract
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====What a (well-crafted) indemnity is not==== | ====What a (well-crafted) indemnity is not==== | ||
=====It | =====It is ''not'' better than a contract===== | ||
An {{tag|indemnity}} is no ''better'' than a contractual claim. It ''is'' a contractual claim. It does not have a harsher accounting impact. Its [[regulatory capital|capital]] treatment is the same. You enforce it as you would a breach of contract: by suing the [[indemnifier]] for its failure to pay the indemnified amount. Since (if well crafted) it is a claim to pay a pre-defined (or at any rate [[deterministic]]) sum, proving your claim is not hard and a well-crafted indemnity is apt for [[summary judgment]]. But careful, counsel: aptness for summary judgment is not a magic property of all indemnities: it depends on how well you crafted yours. | An {{tag|indemnity}} is no ''better'' than a contractual claim. It ''is'' a contractual claim. It does not have a harsher accounting impact. Its [[regulatory capital|capital]] treatment is the same. You enforce it as you would a breach of contract: by suing the [[indemnifier]] for its failure to pay the indemnified amount. Since (if well crafted) it is a claim to pay a pre-defined (or at any rate [[deterministic]]) sum, proving your claim is not hard and a well-crafted indemnity is apt for [[summary judgment]]. But careful, counsel: aptness for summary judgment is not a magic property of all indemnities: it depends on how well you crafted yours. | ||
=====It doesn’t require a breach of contract===== | =====It doesn’t require a breach of contract===== | ||
Meanwhile, note a point of profound importance. While failing to honour an indemnity claim is a contractual breach, the circumstances giving rise to one is not. One need allege no breach and prove no loss to make a claim under a (well-crafted) indemnity. No [[causation]] is required, no value judgment needed to satisfy the [[indemnifier]] of your bona fides: all you need prove is: | Meanwhile, note a point of profound importance. While failing to honour an indemnity claim is a contractual breach, the circumstances giving rise to one is not. One need allege no breach and prove no loss to make a claim under a (well-crafted) indemnity. No [[causation]] is required, no value judgment needed to satisfy the [[indemnifier]] of your bona fides: all you need prove is: | ||