Letter of Indemnity

(redirected from Letters of Indemnity)

Letter of Indemnity

A clause in a contract stating that payments must be made regardless of what happens. Specifically, a letter of indemnity mandates that if one party is unable to complete the contract, that party will pay reparation to the other. See also: Indemnity insurance, Hell or high water contract.
Mentioned in ?
References in periodicals archive ?
Examples include additional credit lines for contractors of state projects, loan provision for subcontractors of major construction contractors, and faster, more convenient issuance of letters of indemnity (LI) to better meet the needs of our customers.
Arizon and Semark offer guidance on the circumstances with which the common types of letters of indemnity can be legitimately used, the pitfalls and risks associated with their use, and the legal and insurance issues that arise.
* Breach of contract (defendants allegedly did not do the payoff paperwork as they had promised and been paid to do, but instead issued letters of indemnity to protect one another);