It was then necessary to determine the amount of compensation to which the injured party was entitled. Let`s say you`re a software developer and your customer wants to be sure that you`ll compensate them for any claims of copyright or copyright infringement. The indemnification clause might look like this: Schwartz says there is little data to support the idea that ending qualified immunity would be costly for police officers due to widespread compensation laws. Here`s an example of what a typical indemnification clause might look like: « Party A performs the work at its own risk and indemnifies Party B for all loss, damage, cost and liability arising from property damage. In this example, Part A agrees that while Party B would have been held liable for a lawsuit in court, Party B is not responsible for compensating Party A for any loss, damage, expense or other liability associated with that act. Gurley was never involved in a transaction that included a set-off clause. « It was atypical for me. » On the other hand, there are good reasons to limit indemnification clauses only to circumstances that you can control. Let`s say you own a design studio and are tasked with creating an original work for a client. After handing over the work to the client, he makes changes to the design, so that a large part copies the design of a well-known brand. When this brand sues your client, you want to be sure that each set-off clause is limited so that it excludes any changes made after the work has been handed over so that you do not have to pay in this situation. The first recordings of the word compensation date back to the 1730s. It is ultimately derived from the Latin indemni(s), which means « lossless ».
This is formed from the prefix in-, which has a negation effect, which is synonymous with un- and demn- of damnum, which means « loss ». He must go to London and claim the compensation he could pay in the family circle before departure. One of the most confusing but critical sections of a contract is the compensation section. Hard word, hard section. I hope this blog will help you. I was responsible for all kinds of compensation in case something went wrong because they weren`t standard tests. An estimate of the gross amount may be made and a corresponding amount may be made available for compensation. In addition, a indemnification clause usually also contains language on how claims are claimed and paid. Clauses can easily be one or two pages long. In summary, the section on compensation can be long and difficult to read. This does not exempt you from trying to understand it. But more importantly, don`t try to navigate these clauses yourself.
Involve your lawyer to create a set-off clause that works for your business. The words compensation, compensation, compensation, compensation (the one who receives the protection) and the person entitled to the compensation (the one who provides the coverage) are used in the context of insurance and legal contracts. Insurance coverage compensates the policyholder, i.e. it protects against financial liability for damage or loss. Damage refers to things that happen with property, such as a car or house, or with injuries a person has suffered. Loss refers to things like the loss of income you might experience because you can`t work. If a person entitled to compensation is compensated for these things, he or she will be compensated by the person entitled to compensation for (at least part of) the money lost or spent. The compensation process or the compensation itself is compensation. Example: Insurance companies are active in the field of compensation – you pay them a small amount so that they can pay you a high amount if something serious happens. « Indemnify » means to compensate someone for their damage or loss.
In most contracts, a indemnification clause is used to compensate one party for damages or losses suffered in connection with the other party`s acts or omissions. The intention is to transfer liability from one party to the compensating party. It is also known as the « harmless withholding » clause because one party compensates the other for certain events. Events usually arise from something under the control of the indemnifying party (again, the party paying compensation or the paying party). She fails in class. Your parents threaten to sue you for damages for the amount of the tuition fees for the following year. Since your contract includes a compensation provision, if the parents sue you, the student would be responsible for paying your losses in court. If not, you may be responsible for reimbursing the parents. The compensation process may take some time, but you will be compensated. In company law, a remuneration agreement can compensate the directors of a company.
This type of compensation protects them from face-to-face lawsuits if the company is sued. What are the other forms of compensation? COVAX has also created incentives to ensure that manufacturers can produce boxes on a large scale once they have been authorized, and to ensure that there are important safety nets in place for compensation, indemnification and no-fault liability. Is compensation used correctly in the next sentence? If you are not familiar with the laws of your state that relate to the subject matter of the contract, you should speak to a lawyer to make sure you know what you are getting into. For example, most states say that a person cannot sue their employer if they are injured on the job if the employer offers the required workers` compensation insurance. However, New York law allows an employee to sue the owner of the property who is not their employer, and also allows that employer to seek compensation from the employer for that lawsuit. Essentially, the employer could end up paying twice (once for employee compensation coverage and another time for payment from the owner to the injured employee). If a indemnification clause uses the word « defend, » you should consider it more carefully. « Indemnify » and « indemnify » mean much the same thing: to make the injured party whole again. On the other hand, language that uses the term « defend » may suggest the responsibility to defend against lawsuits.
Some indemnified parties may prefer to defend themselves against their own lawsuits, so this wording must be carefully considered in the circumstances and the parties. In California, if you are the indemnifying party, you have the option to choose to defend yourself. In fact, California Civil Code § 2778 states: What words share a root or word element with compensation? One of the best examples of compensation is in the context of insurance, where an insurance company insures an owner against damage to their home – the insurer compensates the homeowner. In a commercial context, a indemnification provision protects one party from damages and expenses caused by omissions and errors of the other party. For example, if a seller promises that their tax preparation software is free of defects and compensates the buyer, the buyer can reinstate whether the software used the previous year`s tax tables. You should try to limit indemnification clauses by limiting their scope, setting limits on damages, and determining what actions can be compensated (i.e., clearly define insurance and coverage in the example above). Also consider taking out insurance as a way to limit your financial risk. When a compensation provision is triggered, one party pays the other party`s costs, judgments, settlements, attorneys` fees, costs and penalties. The Indemnitor would make a great cartoon character. Compensation wherever compensation is due! The person entitled to compensation! The answer may lie in the contract, especially if there is an opt-out clause.
What these clauses are and when they are included in contracts is explained below. Contractual Advice – The indemnification clause (part 3) An indemnifying party essentially acts as an insurance company for the other party. All costs, expenses or fees paid by the person entitled to compensation resulting from the actions of the person entitled to compensation will be reimbursed by the provisions relating to compensation. Compensation provisions can be a very powerful form of protection for a company. When drafting or negotiating a contract, be sure to consider the value of including a compensation provision and be careful when offering compensation if you don`t understand the risks. In compensation for the loss of their slaves, owners received on average about a third of the value from them. Our clients often ask, « What is compensation? » A set-off clause is one of the most common and widely used provisions in the negotiation of any type of contract, yet the contracting parties often do not understand its meaning. A common example of compensation occurs in insurance transactions. This often happens when an insurance company agrees, under a person`s insurance policy, to compensate the insured person for losses the insured person has suffered as a result of accidental or property damage. In this type of agreement, Party A would bind Insurance Company B.
If Part A and Part C are involved in any type of incident resulting in property damage or personal injury (for example. B a car accident), insurance company B assumes any liability for which Party A may be responsible. .