Скачать или смотреть Law of Contract -II | Video 4 | Commencement of liability of the indemnifier

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The commencement of liability for an indemnifier can be a complex legal issue, and it depends heavily on the specific terms of the indemnity agreement and the applicable laws. However, here's a general overview:

General principle:

In most jurisdictions, the indemnifier's liability typically commences when the indemnified party's liability becomes absolute and certain. This means that the loss has been incurred, and the amount of the loss is clear and fixed.
Key points to consider:

Contractual terms: The specific wording of the indemnity agreement is crucial. It might stipulate specific triggers for the indemnifier's liability, such as incurring legal costs, receiving a judgment against them, or actually paying out damages.
Type of indemnity: There are different types of indemnities, such as indemnity against loss, indemnity against liability, and indemnity against damage. Each type might have different rules regarding the commencement of liability.
Jurisdiction: Laws and judicial interpretations concerning indemnity agreements can vary depending on the jurisdiction where the agreement is made or enforced.
Examples:

Scenario 1: A company indemnifies its employee for any legal costs incurred if sued during their work. The employee gets sued, incurs legal fees, and loses the case. The company's liability starts when the judgment is final and the amount of legal fees is determined.
Scenario 2: A landlord indemnifies their tenant for any property damage caused by faulty electrical wiring. The wiring malfunctions, causing a fire and damaging the property. The landlord's liability starts when the extent of the damage is assessed and the repair costs are calculated.