What are the implications of indemnity and non-indemnity?

Answer 1

Indemnity refers to a contractual obligation where one party agrees to compensate another for certain damages or losses, providing a level of financial protection and risk management. This can promote security and trust in business transactions, as parties can engage with reduced fear of financial loss. In contrast, non-indemnity arrangements may leave parties vulnerable to unforeseen liabilities, potentially leading to disputes or financial instability. The choice between indemnity and non-indemnity can significantly affect the level of risk each party is willing to assume and their overall business strategy.