The Basic Indemnity Form is a fundamental legal instrument used in Canadian business and personal transactions to establish clear risk allocation between parties. This document is typically employed when one party needs to protect another from potential losses, damages, or legal liabilities arising from specific activities or relationships. The form is particularly relevant in commercial contracts, construction projects, service agreements, and corporate transactions across Canada. It must comply with both federal and provincial legislation, including specific requirements for indemnification clauses in different provinces. The Basic Indemnity Form should clearly outline the scope of protection, procedures for claims, and duration of coverage, while ensuring enforceability under Canadian law. It's essential for risk management and is often required by insurance providers or as part of larger contractual arrangements.
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1. Parties: Identifies and defines the Indemnifier and Indemnitee with their full legal names and addresses
2. Background: Explains the context and purpose of the indemnity agreement
3. Definitions: Defines key terms used throughout the agreement including 'Loss', 'Claims', and 'Indemnified Parties'
4. Scope of Indemnification: Details the specific risks, losses, and circumstances covered by the indemnity
5. Indemnification Obligations: Specifies the precise obligations of the Indemnifier, including financial responsibilities and duties
6. Notice Requirements: Outlines how and when the Indemnitee must notify the Indemnifier of claims
7. Defense of Claims: Describes the process for defending against third-party claims and allocation of defense responsibilities
8. Duration: Specifies how long the indemnification obligations remain in effect
9. Governing Law: Specifies that Canadian law governs the agreement and identifies the applicable province/territory
10. Execution: Signature blocks and execution requirements
1. Insurance Requirements: Required when the Indemnifier must maintain specific insurance coverage
2. Limitations on Liability: Used when parties agree to cap indemnification amounts or exclude certain types of damages
3. Subrogation Rights: Included when dealing with insurance-related indemnification
4. Survival: Added when certain obligations need to survive the termination of the agreement
5. Assignment: Included when transfer of indemnification rights needs to be addressed
6. Alternative Dispute Resolution: Added when parties prefer to resolve disputes through mediation or arbitration
7. Confidentiality: Required when the indemnity relates to confidential information or trade secrets
1. Schedule A - Specific Indemnified Events: Detailed list of specific events or circumstances covered by the indemnity
2. Schedule B - Excluded Claims: List of specific exclusions from the indemnification coverage
3. Schedule C - Insurance Requirements: Detailed insurance requirements including types of coverage and minimum amounts
4. Appendix 1 - Notice Forms: Standard forms for providing notice of claims under the agreement
5. Appendix 2 - Claim Procedures: Detailed procedures for processing and handling claims
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