is Indemnity clause a must in agreement of sale
yeteendra naidu
(Querist) 08 October 2009
This query is : Resolved
does inclusion of indemnity clause weaken
an agreement of sale for a landed property ?
Is this is a must in sale deed.
how is a buyer benefited and a seller not
benefitted or vice versa by this indemnity clause in the above or any document.
A V Vishal
(Expert) 08 October 2009
Naidu
Almost all commercial agreements have an indemnity clause, wherein one party agrees to indemnify the other from the losses / damages caused by its own acts. Such clauses are inevitable and need to be capped. Further, amount of risk involved in the indemnification needs to be compared with the benefits to be derived out of the business relationship. Indemnification for exemplary, consequential, indirect and incidental damages should be avoided. In view of the risk involved, these clauses need careful drafting. Root cause analysis is required for the existence of such clauses. If not required in a particular situation, such clauses should be avoided.
The Indemnity clause is inserted in the sale deed as a matter of precaution by the vendee against the vendor in order to safeguard his interest in respect of any future claims by third parties or the revenue against the said property.
Raj Kumar Makkad
(Expert) 08 October 2009
Indemnity clase is purely legal and required to be inserted in all sale deeds to avoid future complications.
Jithendra.H.J
(Expert) 08 October 2009
Nope! it never weakens the agreement,
if any one not benefitted can aproach the court for compensation etc., the right to approach the court of law regarding that transaction is given under the indemnity clause.
DD Sathe
(Expert) 08 October 2009
Indemnity will take care of unknown liabilities and it strengthens the agreement as you know your liability limitation.
Adinath@Avinash Patil
(Expert) 11 October 2009
INDEMNITY CLAUSE IS LEGAL AND NECESSARY IN AGREEMENT TO SALE.BUT INDEMNITY CLAUSE IS NOT NECESSARY IN SALE DEED.
