General Indemnity Agreement

An indemnity agreement is an agreement whereby one party agrees to protect another party against certain future losses or claims. For example, suppose Party X would like to enter into a contract with Party Y to build a playground, but Party Y is hesitant because of the potential future liability of such an endeavor. In this case, Party X may chose to indemnify Party Y against any future claims that may arise due to Party X’s participation in the contract. Party X is protected and Party Y gets the participation of Party X. (continued ...)