A deed of indemnity is an agreement between two or more parties, the purpose of which is to specify the actions and consequences which will result should a particular event or events occur.
The agreement essentially attempts to negate or limit the risk which one of the parties is exposed to. The exact definition of a deed of indemnity would depend up on the context in which the agreement was drawn up.
Deed of indemnitiesare legal contracts are therefore should be reviewed carefully before signature. It is likely that solicitors would have been involved in drafting and scoring them, and as such legal counsel might be used to ascertain the exact implications of signing them. Both parties should be clear about what their responsibilities are under the agreement.
There are many occasions where a deed of indemnity might be used. Two of these situations are:
