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Indemnity is a legal term that mentions to a promise to compensate someone for losses they incur. It can be a contractual obligation or a statutory requirement.

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In a contract, one party (the indemnitor) decides to indemnify the other party (the indemnitee) for any losses they suffer as a result of the contract. This means that the indemnitor will pay for any damages that the indemnitee incurs, even if the indemnitor is not at fault.

For example, a company might agree to indemnify its employees for any losses they incur as a result of being injured on the job. In this case, the company would be responsible for paying for the employee’s medical bills, lost wages, and pain and suffering, even if the company was not at fault for the accident.

Indemnity can also be a statutory requirement. For example, the law may require a landlord to indemnify their tenants for any losses they incur as a result of a fire or other disaster.

Indemnity is a powerful tool that can help to protect people from financial losses. However, it is important to understand the terms of any indemnity agreement before you sign it. You should also make sure that the indemnitor is financially capable of paying for any losses that you incur.

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