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Deed of Indemnity (General)

This Deed may be used to secure an indemnity from one party to another- that is, an obligation to remunerate the other party for any loss or damage incurred as a result of a particular event.
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Document Overview

An indemnity is a promise by one party (the indemnifier) to take on the obligation of any loss or damage that may be incurred by another party (the indemnified party), usually as a result of entering into a transaction with the indemnified party. For example, many building contracts between the owner of property and the builder contain clauses where the builder indemnifies the owner for any third-party claims brought against the owner for damage or injury caused by the builder’s employees or sub-contractors. An indemnity can also be effected as a separate document, as is done in this deed.

In Australia, certain legislation, regulations and industry codes may affect the enforcement of an indemnity where the indemnity does not comply with the relevant legislation, regulations or codes. It is important when drafting indemnities to be aware of the relevant legislation and codes which may impact the interpretation and enforcement of the indemnities. , such as the Australian Banking Association (ABA) Banking Code of Practice and the National Credit Code.

What does the Deed of Indemnity (General) cover?

  • The parties' continuing obligations;
  • The event(s) that will trigger the indemnity;
  • Procedures for notificationa and payment; and
  • Standard provisions including dispute resolution.

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