The Basic Indemnity Form is a crucial legal instrument in Hong Kong's business environment, designed to provide clarity and certainty in risk allocation between parties. This document is commonly used when one party needs to protect another from specific risks, losses, or liabilities that may arise from business operations, transactions, or specific events. The form is structured to comply with Hong Kong's legal framework, including key legislation such as the Contract (Rights of Third Parties) Ordinance and the Control of Exemption Clauses Ordinance. It can be adapted for various business contexts, from simple commercial transactions to complex corporate arrangements, while maintaining its core purpose of clearly defining indemnification obligations, procedures, and limitations.
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1. Parties: Identifies and defines the Indemnitor (party providing the indemnity) and Indemnitee (party receiving the indemnity protection)
2. Background: Brief context explaining the purpose and circumstances leading to the indemnity arrangement
3. Definitions: Defines key terms used throughout the document for clarity and precision
4. Scope of Indemnification: Clearly outlines what losses, damages, or liabilities are covered by the indemnity
5. Duration: Specifies when the indemnity begins and ends, including any survival provisions
6. Notice Requirements: Sets out how and when the Indemnitee must notify the Indemnitor of claims
7. Payment Terms: Specifies the timing and method of indemnity payments
8. Governing Law and Jurisdiction: Confirms Hong Kong law as governing law and specifies jurisdiction for disputes
1. Claims Procedure: Detailed process for handling claims - included when specific procedures need to be followed for making and responding to indemnity claims
2. Limitations and Exclusions: Specific carve-outs or caps on the indemnity - included when the indemnity is not intended to be unlimited
3. Insurance Requirements: Obligations to maintain specific insurance coverage - included when insurance is relevant to the indemnity arrangement
4. Third Party Rights: Provisions regarding third party rights under the Contract (Rights of Third Parties) Ordinance - included when third parties may need to enforce the indemnity
5. Dispute Resolution: Specific procedures for resolving disputes - included when parties want to specify arbitration or mediation before litigation
6. Confidentiality: Obligations to keep the indemnity terms confidential - included when confidentiality is a concern
1. Schedule 1 - Specific Indemnified Events: Detailed list of specific events or circumstances covered by the indemnity
2. Schedule 2 - Claim Form Template: Standard form for making indemnity claims
3. Schedule 3 - Insurance Requirements: Detailed specifications of required insurance coverage, if applicable
4. Appendix A - Supporting Documents: List of relevant background documents or agreements referenced in the indemnity
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