Indemnify is a compensation for damages paid by an engineering firm to its clients. From a legal perspective, indemnify can be considered to be an exemption from liabilities that an engineering firm may opt to legally take for damages incurred during the accomplishment of the terms of a contract. The concept of indemnifying is based on the entire principle of contractual agreements the parties involved the contract. For indemnifying to be complete, the party entering into a contract with its client, says a civil or environmental engineering firm, must agree to compensate or pay for all potential damages or losses that may be incurred in the process of fulfilling the contract.
Indemnification on the other hand is defined as the act of compensating or paying for damages or losses sustained by a company during the fulfillment of the terms of a contract. Indemnification can also be considered to be the right entitled to an injured party, mostly the client, to claim for compensation or reimbursement for the damages, losses or liability incurred from the company that it had initially entered into contractual agreement with.
At some instances, the right to indemnity does not have to arise as a result of breaching the terms of a contract between the client and the service provider. This therefore means that the right for indemnity does not only have to arise from contractual laws. Many jurisdictions under the common law or statues also foster for indemnification as a way of protecting the clients from exploitative service providers.
Negligence, errors and omissions are major causes that make the injured party seek for indemnification. Negligence under the legal framework is perceived to be a failure to exercise the caution or care that a reasonable and prudent would have exercise in similar circumstance. At many times, negligence results harm or damages that are caused unintentionally thus as a result of carelessness.
Error is defined as a mistake unidentified to both parties during the contracting process. In its advanced form, error can lead to the entire contract being termed as void. Omission, a common a common aspect in contract law, is the failure to perform or fulfill the terms initially agreed upon in contract that two or more parties are bound to. Omissions can also lead to a contract declared as void and determines the terms for compensation.
Work cited
Olson, John F, and Josiah O. Hatch. Director & Officer Liability: Indemnification and Insurance. New York, N.Y: C. Boardman, 1990.
Smerdon, Edward. Directors' Liability and Indemnification: A Global Guide. London: Globe Law and Business, 2011. Print.
Robinson, Nehemiah. Indemnification and Reparations: Jewish Aspects. New York: Institute of Jewish Affairs of the American Jewish Congress and World Jewish Congress, 1944. Print.
