Indemnity Agreement

An indemnity agreement entered between two parties requires one party to protect another party against anticipated losses, claims, or lawsuits that may occur in the future. As an example, Party A would like hire Party B to construct a playground, but Party B is reluctant due to the possibility of suffering future liability because of such an enterprise. In this situation, Party A may select to indemnify Party B against any future claims and lawsuits that may originate due to Party B's performance in the agreement. (continued ...)