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Template:Indemnity description: Difference between revisions
→How is an indemnity different from a breach of contract?
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*'''Losses caused by the [[indemnifier]]’s misbehaviour to a third party''': Events that arise though the mendacity — though not actual [[breach of contract]] — of the [[indemnifier]]. These arise where the [[indemnifier]] has given a [[third party]] an interest that, unbeknownst to [[indemnified party]], its honest performance of the [[contract]] somehow abrogates. These a reasonable [[indemnifier]] should not resist, seeing as they are within its gift to prevent. | *'''Losses caused by the [[indemnifier]]’s misbehaviour to a third party''': Events that arise though the mendacity — though not actual [[breach of contract]] — of the [[indemnifier]]. These arise where the [[indemnifier]] has given a [[third party]] an interest that, unbeknownst to [[indemnified party]], its honest performance of the [[contract]] somehow abrogates. These a reasonable [[indemnifier]] should not resist, seeing as they are within its gift to prevent. | ||
===How is an indemnity different from a breach of contract?=== | |||
Contracts are simple things: each party has something the other wants; by contract, they memorialise their willing exchange. And, should you fail to keep up your end of a bargain, your counterpart must have a means of redress. This is a claim for [[breach of contract]]. However plain your promise, the theoretical extent of the loss you cause should you fail to keep to it is limited only by the depraved imagination of the opposing lawyer: loss of bargain, hedge break costs, lost opportunity, [[consequential loss]], taxes, reputational damage, [[restitution]], emotional distress, nervous shock, (needless to say, but inevitably said) legal costs and even [[exemplary damages]] to punish you for your high-handed and contumelious disregard for another merchant’s reasonable commercial expectations. | Contracts are simple things: each party has something the other wants; by contract, they memorialise their willing exchange. And, should you fail to keep up your end of a bargain, your counterpart must have a means of redress. This is a claim for [[breach of contract]]. However plain your promise, the theoretical extent of the loss you cause should you fail to keep to it is limited only by the depraved imagination of the opposing lawyer: loss of bargain, hedge break costs, lost opportunity, [[consequential loss]], taxes, reputational damage, [[restitution]], emotional distress, nervous shock, (needless to say, but inevitably said) legal costs and even [[exemplary damages]] to punish you for your high-handed and contumelious disregard for another merchant’s reasonable commercial expectations. | ||