{"id":224012,"date":"2023-06-27T14:59:40","date_gmt":"2023-06-27T01:59:40","guid":{"rendered":"https:\/\/legalvision.co.nz\/?p=224012"},"modified":"2023-07-05T20:25:06","modified_gmt":"2023-07-05T07:25:06","slug":"indemnity-provisions","status":"publish","type":"post","link":"https:\/\/legalvision.co.nz\/commercial-contracts\/indemnity-provisions\/","title":{"rendered":"Benefits of Including Indemnity Provisions in NZ Commercial Contracts"},"content":{"rendered":"\n

Contracts are pivotal to making commercial agreements. They are generally enforceable in law, meaning both parties will have rights and obligations toward each other. Contracts are only enforceable when they meet the elements of a binding contract<\/a>. However, a contract is only as strong as its terms. Knowing what to include in a contract can be difficult, so it is always best to consult a lawyer when drafting contracts. A common clause in a commercial contract is an indemnity clause. This article will unpack indemnity provisions and the benefits of including them in your New Zealand commercial contract.<\/p>\n\n\n

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Commercial Contracts Checklist<\/div>\n
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What is an Indemnity Clause?<\/h2>\n\n\n\n

An indemnity clause protects one party from potential losses or costs. The party providing the protection is the indemnifier, while the party receiving the protection is the indemnified party. <\/p>\n\n\n\n

The indemnity clause holds the indemnifier responsible for covering any expenses or losses incurred by the indemnified party. The extent of this responsibility depends on the specific type of indemnity clause you use in your commercial agreement. For example, the indemnifier may be liable for all types of losses suffered by the indemnified party, or they may only be responsible for the losses they directly cause.<\/p>\n\n\n\n

Why Would a Party Indemnify Another Party?<\/h2>\n\n\n\n

Including an indemnification clause<\/a> in a contract acts as insurance for the protected party. If the party entering into a risky deal has an indemnification clause, it gives them peace of mind. On the other hand, the party providing the indemnity hopes the clause will never need to be used. Rather, you would include it to encourage the other party to agree to the deal.<\/p>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\n

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