The General Indemnity Agreement serves as a risk allocation tool in Canadian business transactions, providing a framework for protecting parties against specific losses or liabilities. This document is commonly used in situations where business relationships involve potential risks that one party agrees to assume on behalf of another. The agreement must comply with Canadian federal and provincial laws, including specific provincial requirements for contract formation and enforcement. A General Indemnity Agreement typically includes detailed provisions regarding the scope of indemnification, notification requirements, defense obligations, and payment terms. It's particularly crucial in complex business transactions, construction projects, corporate restructuring, and situations involving substantial financial or operational risks. The document can be customized to address specific industry requirements while maintaining consistency with Canadian legal standards and practices.
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1. Parties: Identifies and defines all parties to the agreement, including the Indemnitor(s) and Indemnitee(s)
2. Background: Provides context for the agreement and explains the relationship between the parties
3. Definitions: Defines key terms used throughout the agreement
4. Scope of Indemnification: Details the specific risks, losses, and circumstances covered by the indemnification
5. Indemnification Obligations: Specifies the Indemnitor's obligations to defend, indemnify, and hold harmless
6. Notice Requirements: Procedures for notifying parties of claims or circumstances that might lead to claims
7. Defense of Claims: Process for handling and defending claims covered by the indemnity
8. Payment and Reimbursement: Terms for payment of losses, expenses, and costs covered by the indemnity
9. Duration: Term of the agreement and survival of obligations
10. Representations and Warranties: Statements of fact and promises made by the parties
11. General Provisions: Standard contract clauses including governing law, amendments, notices, and severability
1. Security and Collateral: Include when the Indemnitor must provide security or collateral to support their obligations
2. Cross-Indemnification: Used when parties agree to indemnify each other for different risks or circumstances
3. Insurance Requirements: Include when specific insurance coverage must be maintained
4. Multiple Indemnitors: Additional provisions for when there are multiple parties providing indemnification
5. Limitation of Liability: Include when parties agree to cap indemnification obligations
6. Special Conditions: For industry-specific or unique circumstances requiring additional provisions
7. Dispute Resolution: Include when parties want specific procedures for resolving disputes
8. Confidentiality: When the indemnification relates to or requires protection of confidential information
1. Schedule A - Specific Indemnified Matters: Detailed list of specific risks, losses, or circumstances covered by the indemnity
2. Schedule B - Claims Procedures: Detailed procedures for handling claims and defense obligations
3. Schedule C - Security Details: Details of any security or collateral provided to support indemnification obligations
4. Schedule D - Insurance Requirements: Specific insurance requirements including types, amounts, and conditions
5. Appendix 1 - Related Agreements: List and/or copies of related agreements referenced in the indemnity
6. Appendix 2 - Corporate Resolutions: Corporate authorizations for entering into the indemnity agreement
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