Contract Indemnification Law and Legal Definition
The person who indemnifies another is called the indemnitor or indemnifier and the person who receives indemnity from another is called indemnitee. Indemnification is the act of making another "whole" by paying any loss another might suffer. This usually arises from a clause in a contract where a party agrees to pay for any losses which arise or have arisen. Example: two parties settle a dispute over a contract, and one of them may agree to pay any claims which may arise from the contract, holding the other harmless. A business owner may agree to turn a business over to another person for a reduced price if they pay the debts and other obligations of the business. A landlord may agree in a lease to indemnify the landlord for any damages incurred. In a broad sense, insurance policies are indemnity contracts.