StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Interpretation of contract indemnity provisions - Essay Example

Cite this document
Summary
Indemnity provisions are a standard feature of commercial contracts, where the respective parties agree to absolve each other of liabilities arising out of certain losses. This report examines the application and interpretation of indemnity provisions. In particular, the…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER97.4% of users find it useful

Extract of sample "Interpretation of contract indemnity provisions"

Download file to see previous pages

Indemnity can be broadly defined as the promise to pay money; with one party to a contract making a promise to be responsible for any losses which are suffered by other parties to the contract and this occurs when there has been a breach of a contract or a warranty. In the event that one party suffers a loss, the other party may have provided a guarantee in the contract to make up for such losses and would then be obliged to make good the losses which have been suffered, whether through damages or any other kind of loss which occurs.

These losses can be compensated in the form of cash payments, repairs or a replacement of the item that has been lost or damaged. This study proposes to examine how indemnity differs from warranties and exclusion contracts and how the manner in which the indemnity provisions are spelt out can influence the manner in which such provisions are interpreted. According to Parker and Slavich, an indemnity is a contract between two parties in which one party agrees to be liable for the losses or damage that are sustained by another party, whether the party is a signatory to the contract or a third party, on the basis of a specified act or a condition or the damage that results from a claim or a demand1.

The purpose of a contractual indemnity is to ensure that the risk inherent in the performance of the contract is distributed among all the parties to the contract, although in reality, the net result will be based upon the relative bargaining power of the parties. One of the different forms of the indemnity provision in contracts is the survival provision, whereby the survival of representations, warranties and indemnities are limited to an agreed period of time from the execution of the contract.

Another aspect of indemnity contracts are releases, i.e., releases of claims and liabilities Indemnity clauses are offered in

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Interpretation of contract indemnity provisions Essay”, n.d.)
Interpretation of contract indemnity provisions Essay. Retrieved from https://studentshare.org/miscellaneous/1568810-interpretation-of-contract-indemnity-provisions
(Interpretation of Contract Indemnity Provisions Essay)
Interpretation of Contract Indemnity Provisions Essay. https://studentshare.org/miscellaneous/1568810-interpretation-of-contract-indemnity-provisions.
“Interpretation of Contract Indemnity Provisions Essay”, n.d. https://studentshare.org/miscellaneous/1568810-interpretation-of-contract-indemnity-provisions.
  • Cited: 0 times

CHECK THESE SAMPLES OF Interpretation of contract indemnity provisions

Result of Semen vs Deutsche Tamoil GmbH Case

This is attributable to the negative implications that individuals suffer as a result of incidences such as breach of contract.... hellip; Critically analyze the above statement In the modern society, most business relations are grounded on firm legal provisions.... Name: Institution: Course: Tutor: Date: The ruling by the European Court of Justice (now the Court of Justice of the European Union) in the case of Semen v Deutsche Tamoil GmbH (C-348/07) means that a Principal in the UK will never choose indemnity on the termination of a commercial agency....
8 Pages (2000 words) Essay

Conveyance as an Act of Transferring the Ownership of a Property

The contract is normally formed by letters between the solicitors on behalf of each of the seller and purchaser, called missives.... Once all the terms of the contract are agreed, the missives are said to be concluded, and there is then a binding contract for the sale of the property.... Normally the contract is conditional upon matters such as the sellers being able, before completion of the transaction, to prove that they have good title to the property and to exhibit clear searches from the property registers and the local authority....
11 Pages (2750 words) Essay

Construction Contracts

Also, there will be minimal arguments to expect in the interpretation of the contract because the new JCT2005 is written in plain simple English and the major parts are segregated from one another in sections.... On insurance pre-requisites, the contractor has become obliged to put up a professional indemnity insurance, an agreement feature not included in the 1998 version.... If there is a mutual agreement to have an overseer for the works, the title is now called Architect/contract Administrator instead of just an Architect....
6 Pages (1500 words) Essay

Business Law - Exclusion Clauses and Unfair Contract Terms

Using relevant case law and statutory provisions, explain whether the store has any liability for negligence in relation to Henry's injury and property damage AND whether the notice on the door discharges its liability.... Henry has to seek the justice under “The unfair contract terms act 1977”in which if the act of any person or business organization is unreasonable in terms of the safe and quality supply of the products, the supplier may be...
4 Pages (1000 words) Essay

The Doctrine of Frustration

This is an important distinction as the contract is not void “ab initio” (from inception) as solely future obligations are discharged on a strict interpretation of the doctrine of frustration.... A frustrated contract is a contract which becomes incapable of being performed.... hellip; The author states that the legal consequence of a contract found to be frustrated is that the contract is automatically terminated at the point of frustration....
10 Pages (2500 words) Essay

The English Law of Marine Insurance

"The English Law of Marine Insurance" paper examines the concept of indemnity in the context of English Marine Insurance Law and argues that it is an imperfect system of compensation for both the assured and the insurer, but can be construed to be heavily weighted in favor of the insurer.... By taking this approach, the insured will avoid the consequences of limited coverage under the presumptions and principles that flow from both the indemnity principle and the insurable interest doctrine....
8 Pages (2000 words) Coursework

Good Faith and Consistency in International Agency Contracts

In this essay, efforts have been made to take a look at the present laws, particularly binding on United Kingdoms, and how this country overcomes constraints and difficulties encountered during interacting with trade partners, particularly other EC trading partners.... hellip; With the use of decided case laws and impinging legal statutes that bind, or exonerate trading partners from responsibility and rights, this study seeks to throw light on the present scenario surrounding the directives relating to the coordination and management issues, that arise in a multinational milieu....
25 Pages (6250 words) Research Paper

Arbitration Provisions For International Oil And Gas Agreements

The purpose of the paper "Arbitration provisions For International Oil And Gas Agreements" is to discuss the making of mutual hold harmless provisions effective.... The higher levels of risk involved then requires the “adjustment of contractual risk allocation matrix where indemnity is the main key element2 ” This means that the contractual agreements that pertain to the oil and gas industry do not accept the standard notion of risk allocation i....
17 Pages (4250 words) Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us