Reply to thread

Message: [QUOTE="IthacaMatt, post: 206995, member: 405"] No, he's right. He might have said it more artfully, but indemnification is kind of like a private insurance arrangement between 2 parties; it's a means of shifting risk from one party to another. As Alsacs said, the breaching party typically will pay the costs of the non-breaching party incurred because of the breach. Indemnification is usually invoked with respect to the act of some third party, but you frequently see it in commercial contracts where a service provider does not want to be sued for consequential damages beyond the cost of the services they are rendering, or you see it when there is IP licensing involved, and a warranty or representation is made that the IP (think software code) does not infringe the rights of any third parties, and won't subject the customer to any claims that it does. [/QUOTE]