Signatory Indemnification Agreement Made Easy

Limited ThirdParty Trading Authorization and Indemnification Form

hi I'm Michele welcome back to finally revealed in this section we've been going over different types of terms that you may or may not know what they mean or how they're used today I want to talk about another one of those terms and this is indemnification to indemnify or to provide an indemnification sometimes comes up in a context where you're signing a contract you're making a settlement or you are separating maybe in a business you're going your own ways or you are selling someone something or they're selling something to you to indemnify someone means to in common terms cover their back means that you are going to step up for them and you are going to take care of them and any claims that are made against this person for the circumstance described for the product that's being sold or otherwise as is explained now to be responsible for the indemnification it should be clear what it is that you are indemnifying them against is it a something that if something goes wrong is it for a particular claim is it for a particular amount of a claim for example somebody is settling a bill for you and they say is this all you owe and you say yes and they pay for example $5,000 on your behalf then they say look I want you in Dem I want to be indemnified because now I've got this car I paid off the loan and if anybody else comes back against me and just wants to get more money I want you to be good for it you to be responsible for it and indemnify me because I don't want to have any surprises so will you do that well make sure that that is covered make sure what you're talking about is clear in the indemnification also if you are indemnifying someone make sure you read it carefully because indemnification by itself is the principle but then there will be a series of words after that if it's in a clause in a contract or just a separate indemnification agreement it will say what your indemnifying them for is that a particular claim is it for a period of time is it identified just to a product does it also include interest does it include attorneys fees does it include all costs of any court matters also some indemnification agreements or clauses may say that they have the opportunity if a claim is made against them who is the person that is being indemnified they can go out and hire their own attorney whoever they want at their own cost and you're going to indemnify them against any loss which means you're going to be paying the bill so make sure you understand exactly what you're getting into you may think there's no problem this matters resolved and I don't have a problem indemnifying you and just giving you that comfort but make sure you understand what you're on the hook for potentially and also depending upon where you live make sure that you understand how long that can go for because in the normal scheme of things this is another type of a contract and contracts have a set period of time that they are enforceable so if it's not provided in the indemnification agreement specifically as to a time frame make sure that you understand how long you have this possible thing that can come back that you're going to have to be responsible for okay so that's indemnification I hope that that helps you if you're interested in our other videos take a look at the playlist because they're organized by subject matter if there is something in here that you watch that makes you have another question leave us a comment or send an email and I'll be happy to take a look at it and possibly make a video for you on that subject and if you want to be alerted when our new videos come out follow us on Twitter or Facebook or subscribe I'm Michele and I'll see you next time Thanks