An Indemnity Declaration is essential in situations where parties need to allocate risk and establish clear liability protection mechanisms under Indian law. This document is commonly used in corporate transactions, service agreements, property dealings, and personal arrangements where one party needs to protect another against potential losses. The declaration must comply with the Indian Contract Act, 1872, and related legislation, including stamp duty requirements and possible registration needs. It typically includes detailed provisions about the scope of indemnity, claim procedures, and duration of protection. The Indemnity Declaration serves as a crucial risk management tool, providing clarity on obligations and helping prevent future disputes by clearly documenting the indemnifier's commitments to the indemnitee.
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1. Declaration Date and Parties: Identifies the date of declaration and the indemnifier and indemnitee with their full legal names and addresses
2. Recitals: Background information explaining the context and purpose of the indemnity declaration
3. Definitions: Key terms used in the declaration defined for clarity and precise interpretation
4. Scope of Indemnity: Clearly defines what losses, damages, or liabilities are covered by the indemnity
5. Indemnification Obligations: Details the specific obligations of the indemnifier, including timing and process for providing indemnification
6. Duration: Specifies how long the indemnity declaration remains valid
7. Process for Claims: Outlines the procedure for making and responding to indemnification claims
8. Governing Law: Specifies that Indian law governs the declaration and its interpretation
9. Execution: Space for signatures, witness details, and notarization if required
1. Limitations on Liability: Used when there are specific exclusions or caps on the indemnity amount
2. Insurance Requirements: Include when the indemnifier must maintain specific insurance coverage
3. Survival Clause: Added when certain obligations need to survive the termination of the declaration
4. Third Party Claims: Include when the indemnity extends to claims made by third parties
5. Assignment: Added when there's a need to restrict or permit the transfer of rights under the declaration
6. Dispute Resolution: Include when specific dispute resolution mechanisms like arbitration are preferred
1. Schedule A - Specified Losses: Detailed list of specific losses or damages covered by the indemnity
2. Schedule B - Protected Assets: List of specific assets or properties covered by the indemnification
3. Schedule C - Excluded Claims: List of specific claims or circumstances excluded from the indemnity coverage
4. Appendix 1 - Supporting Documents: Copies of relevant documents referenced in the declaration
5. Appendix 2 - Claim Form Template: Standard format for submitting indemnification claims
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