The Basic Indemnity Agreement serves as a fundamental risk allocation tool in commercial relationships under Dutch law. It is commonly used when parties need to clearly define who bears specific risks and financial responsibilities in business transactions or ongoing relationships. This document type is particularly relevant in scenarios involving corporate transactions, service agreements, or business collaborations where one party seeks protection against potential losses or liabilities. The agreement must comply with Dutch Civil Code requirements and European Union regulations, making it suitable for both domestic Dutch transactions and international business dealings with Dutch connections. The Basic Indemnity Agreement typically includes detailed provisions on the scope of indemnification, claim procedures, and any limitations or exclusions, providing a clear framework for risk management and dispute resolution.
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1. Parties: Identification and details of the indemnitor and indemnitee
2. Background: Context of the agreement and relationship between the parties
3. Definitions: Key terms used throughout the agreement
4. Scope of Indemnification: Clear description of what losses, damages, or liabilities are covered by the indemnity
5. Indemnification Procedure: Process for making claims and the indemnitor's obligations to defend
6. Notice Requirements: Timeframes and procedures for notifying the indemnitor of claims
7. Duration: Term of the indemnification obligations
8. Limitations and Exclusions: Specific carve-outs and caps on indemnification obligations
9. Governing Law and Jurisdiction: Confirmation of Dutch law application and jurisdiction
10. Entire Agreement: Integration clause confirming the complete understanding between parties
11. Execution: Signature blocks and execution requirements
1. Third Party Claims: Specific procedures for handling claims made by third parties - include when third party claims are likely
2. Insurance Requirements: Obligations to maintain specific insurance coverage - include when insurance is relevant to the indemnification
3. Security: Requirements for security or collateral to support indemnification obligations - include for high-value indemnities
4. Subrogation Rights: Rights of the indemnitor to pursue claims against third parties - include when relevant to the specific situation
5. Alternative Dispute Resolution: Mediation or arbitration procedures - include when parties prefer alternative to court proceedings
6. Assignment: Rights to assign the indemnification obligations - include when transfer rights are important
7. Survival: Provisions that continue after agreement termination - include for long-term risks
1. Schedule A - Specific Indemnified Events: Detailed list of specific events or circumstances covered by the indemnity
2. Schedule B - Claim Procedures: Detailed procedures for making and handling indemnification claims
3. Schedule C - Financial Caps and Limitations: Specific financial limitations and thresholds for indemnification
4. Appendix 1 - Contact Information: Details of key contacts for notices and claims
5. Appendix 2 - Form of Claim Notice: Template for submitting indemnification claims
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