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Legal Deed of Indemnity

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LEGAL DEED OF INDEMNITY

This Deed of Indemnity (the Deed) is made effective as of by and between Indemnifier Name: , whose principal address is , and Indemnitee Name: , whose principal address is .

RECITALS

WHEREAS, the Indemnifier is engaged in the business or transaction described as (the Transaction); and

WHEREAS, the Indemnitee is entering into or has entered into obligations in connection with the Transaction and requires indemnity from the Indemnifier in respect of certain liabilities, losses and claims arising out of or in connection with the Transaction; and

WHEREAS, the parties wish to record the terms upon which the Indemnifier will give the indemnity contained in this Deed.

NOW THEREFORE

In consideration of the mutual covenants set forth in this Deed and other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the parties agree as follows:

1. DEFINITIONS

In this Deed, unless the context otherwise requires:

"Claim" means any demand, action, suit, proceeding, investigation or allegation, whether civil, criminal, administrative or otherwise, made or brought by a Third Party against the Indemnitee.

"Losses" means all liabilities, losses, damages, fines, penalties, judgments, settlements, interest, costs and expenses (including reasonable attorneys' fees and costs of investigation) whether incurred before or after the date of this Deed and whether arising in contract, tort, statute or otherwise.

"Third Party" means any person other than a party to this Deed.

2. INDEMNITY

Subject to the terms and conditions of this Deed, the Indemnifier irrevocably and unconditionally indemnifies and agrees to keep indemnified the Indemnitee from and against all Losses which the Indemnitee may sustain, suffer or incur and which arise out of or in connection with the Transaction, any breach of this Deed by the Indemnifier, or any negligent act or omission or wilful misconduct of the Indemnifier or its officers, employees or agents.

3. SCOPE AND LIMITATIONS

The indemnity in clause 2 covers Losses whether direct or indirect, consequential or otherwise, except to the extent that such Losses result from the gross negligence or wilful misconduct of the Indemnitee.

The parties agree that the indemnity shall be limited to the sum of (Indemnity Cap), unless the Indemnifier expressly agrees in writing to a higher amount.

4. NOTICE AND DEFENCE OF CLAIMS

The Indemnitee must give the Indemnifier prompt written notice of any Claim in respect of which indemnity is or may be sought. Failure to give such notice will not relieve the Indemnifier of its obligations except to the extent the Indemnifier is materially prejudiced by such failure.

The Indemnifier shall be entitled, at its own cost and expense, to assume and conduct the defence and settlement of any such Claim, provided that the Indemnifier shall not, without the prior written consent of the Indemnitee (which consent shall not be unreasonably withheld), agree to any settlement that (i) admits liability on the part of the Indemnitee, (ii) imposes any injunctive or other equitable relief against the Indemnitee, or (iii) requires payment of any amount by the Indemnitee in excess of the Indemnity Cap.

5. SETTLEMENTS

The Indemnifier shall not enter into any settlement or compromise of a Claim which imposes obligations or liabilities on the Indemnitee without the Indemnitee's prior written consent. The Indemnifier shall not plead, settle or otherwise resolve any Claim in a manner that would adversely affect the Indemnitee's rights without the Indemnitee's consent.

6. SUBROGATION AND MITIGATION

Upon payment of any Losses under this Deed, the Indemnifier shall be subrogated to the rights of the Indemnitee in respect of such Losses and the Indemnitee shall execute all documents necessary to secure such rights. The Indemnitee shall use reasonable endeavours to mitigate any Loss.

7. REPRESENTATIONS AND WARRANTIES

Each party represents and warrants to the other that it has full power and authority to enter into this Deed, that the execution and performance of this Deed will not violate any applicable law or agreement binding on it, and that this Deed constitutes a legal, valid and binding obligation enforceable against it in accordance with its terms.

8. INSURANCE

The Indemnifier shall procure and maintain adequate insurance to cover its obligations under this Deed. The Indemnifier shall provide evidence of such insurance to the Indemnitee upon request.

9. COSTS, FEES AND INTEREST

All reasonable costs and expenses (including reasonable attorneys' fees) incurred by the Indemnitee in connection with the enforcement of this Deed or the defence of any Claim covered by this Deed shall be recoverable as Losses subject to the terms of this Deed. Any amounts due under this Deed and unpaid shall bear interest at the rate of .

10. NOTICES

All notices, requests, consents and other communications required or permitted under this Deed must be in writing and delivered to the addresses set out below (or to such other address as a party may designate by notice in accordance with this clause).

11. AMENDMENT AND WAIVER

No amendment or waiver of any provision of this Deed shall be effective unless it is in writing and signed by both parties. No failure or delay by a party to exercise any right under this Deed shall operate as a waiver of that right.

12. COUNTERPARTS

This Deed may be executed in any number of counterparts, each of which when executed and delivered is an original, but all counterparts together constitute the same agreement.

13. GOVERNING LAW

This Deed shall be governed by and construed in accordance with the laws of . The parties submit to the exclusive jurisdiction of the courts of that jurisdiction.

14. ENTIRE AGREEMENT

This Deed constitutes the entire agreement between the parties with respect to the subject matter and supersedes all prior agreements, arrangements and understandings between the parties relating to that subject matter.

15. SEVERABILITY

If any provision of this Deed is held to be illegal, invalid or unenforceable in whole or in part under applicable law, that provision shall to that extent be deemed severed and the remaining provisions shall continue in full force and effect.

ADDITIONAL PROVISIONS

Indemnifier - Printed Name:

By:

Date:

Indemnitee - Printed Name:

By:

Date:

Enter text✕

What a Legal Deed of Indemnity Is and when it's used

A Legal Deed of Indemnity is a formal written promise in which one party (the indemnitor) agrees to compensate or defend another party (the indemnitee) for specified losses, liabilities, or claims arising from a defined set of events. Commonly used in real estate closings, corporate transactions, and construction contracts, the deed establishes risk allocation beyond ordinary contract language by being executed as a deed with explicit signature formalities. Because it operates as an independent obligation, it often contains specific provisions for defense, mitigation, limits on liability, exclusions, and survival beyond termination.

Why parties rely on a Deed of Indemnity

A deed of indemnity clarifies who bears losses and who controls defense, reducing litigation uncertainty and protecting escrow agents, lenders, buyers, or service providers from third-party claims tied to a covered event.

Why parties rely on a Deed of Indemnity

Who commonly prepares or signs this deed

Typical users span transactional and risk-bearing roles who need clear, enforceable risk allocation in commercial or property matters.

  • Escrow agents, title companies, and lenders who require protection when releasing funds or clearing title.
  • Sellers, buyers, and developers in real estate transactions seeking to manage post-closing claims.
  • Contractors, subcontractors, and owners in construction projects where third-party claims and indemnities are routine.

These roles often require counsel review and may impose additional execution formalities such as witness signatures or notarization depending on state law and the document's substance.

Typical signers and decision-makers

General Counsel

In-house or outside counsel often drafts and reviews indemnity deeds, verifying scope, exclusions, and enforceability. They confirm that language aligns with company risk policy and applicable statutes before advising the authorized signer.

Chief Executive Officer

A corporate officer or authorized signatory executes deeds on behalf of the organization; company bylaws or delegated authority determine who has power to bind the entity to a deed of indemnity.

Core sections to include in a professional deed

A well-drafted deed of indemnity organizes obligations clearly, limits exposure where appropriate, and specifies how claims will be handled to preserve each party's rights and remedies.

Parties & Recitals

Identify all parties by full legal name, state of formation if applicable, and include recitals that explain the underlying transaction and why indemnity is required.

Scope of Indemnity

Describe covered claims precisely (third-party claims, losses, costs, attorneys' fees) and whether the indemnity is for negligence, strict liability, or other specified events.

Exclusions and Limits

Specify exclusions (e.g., fraud, gross negligence) and monetary caps or baskets to prevent open-ended liability and align with negotiated risk allocation.

Defense and Control

State whether the indemnitor controls defense, how counsel is selected, and whether the indemnitee may participate at its expense to avoid conflicts of interest.

Survival and Duration

Set survival periods after termination or closing, and clarify when the indemnity expires or remains enforceable for latent claims.

Execution Formalities

Include signature blocks, witness and notary acknowledgement if required, and governing law and venue clauses for dispute resolution.

Essential data to capture on the deed

Full legal names: As shown on ID
Addresses: Street, city, state, ZIP
Effective date: MM/DD/YYYY
Consideration: Amount or description
Scope summary: Clear claim triggers
Signature block: Signer, title, date

Step-by-step: executing a Deed of Indemnity

Follow a clear sequence to prepare, review, sign, and retain the deed so it is enforceable and readily produced if a claim arises.

  • 01
    Prepare draft: Collect transaction details and draft scope and limits.
  • 02
    Legal review: Counsel checks enforceability and clause interactions.
  • 03
    Execution: Obtain signatures, witnesses, and notarization as required.
  • 04
    Record & retain: Store executed copy and serve relevant parties.

Configuring an online signing workflow

Set up a signing workflow that matches required execution order and authentication level before sending the deed for signature.

Field Configuration
Authentication Email link, SMS code, or two-factor as required
Signing order Sequential signer order for deeds and witnesses
Notarization RON or in-person per state rules
Retention Secure, tamper-evident storage with audit trail

Typical online signing flow for an indemnity deed

Digital execution follows predictable stages: upload, field placement, signer authentication, signing, and audit-trail retention.

  • Upload document: Add deed PDF or DOCX to platform
  • Place fields: Add signature, date, and witness fields
  • Send to signer: Assign signing order and authentication
  • Complete signing: Signer authenticates and signs; audit recorded

Technical and integration considerations

Choose an eSignature platform that supports required authentication, notarization workflows, and secure storage before sending the deed.

  • Integrations: Salesforce, NetSuite, Google Workspace supported
  • File types: PDF and Word (DOCX) accepted
  • Notarization: Supports RON and in-person acknowledgment

Confirm the provider supports audit trails, secure storage (AES-256 at rest, TLS 1.2/1.3 in transit), and any industry compliance needs such as HIPAA BAA before completing execution and retention workflows.

Common risks and consequences of errors

Incorrect party name: May void indemnity
Missing effective date: Creates enforceability ambiguity
No notarization where required: State-specific invalidity risk
Undefined scope: Leads to costly litigation
Unlimited liability: Exposes indemnitor to excessive claims
Failure to retain: Inability to prove terms

Frequent drafting and execution mistakes to avoid

  • Using vague or overly broad language for covered events that courts may construe against the drafter, increasing litigation exposure.
  • Failing to require or document proof of insurance or limiting indemnity to insured losses, which can leave gaps in recovery options.
  • Omitting execution formalities such as witness or notary lines in jurisdictions that treat deeds differently than ordinary contracts.
  • Not specifying defense control or counsel selection, resulting in conflicting obligations and increased defense costs.

Practical examples of deed use in transactions

Two real-world examples illustrate how deeds of indemnity function in common business scenarios.

Real Estate Closing Example

A buyer agrees to indemnify a seller for a specific title defect discovered post-closing and not disclosed earlier.

  • The deed names the title insurer and sets a monetary cap.
  • The seller used an executed deed with a notary and retained an executed copy, which simplified claim resolution and avoided costly litigation.

Operational Transaction Example

A vendor provides indemnity for IP infringement arising from supplied software.

  • The deed limits liability to replacement costs and requires insurer-backed defense.
  • The vendor's counsel negotiated defense-control language, which clarified responsibilities and reduced dispute escalation during a subsequent third-party claim.

eSignature vendor comparison for executing deeds (signNow first)

Key pricing and feature criteria for common eSignature vendors; signNow is listed first per table convention to aid platform comparison.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial Yes, 7-day trial Varies Varies Varies Varies
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No cap 100 env/user/yr Varies by plan Varies by plan Varies by plan

Common questions and practical answers

Answers to frequent legal and execution questions about deeds of indemnity and digital execution methods.


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