The Letter of Indemnity Form is a crucial risk management document used in New Zealand business transactions and relationships. It is commonly employed when one party needs to provide financial protection or security to another against potential losses, claims, or liabilities. This document type is particularly relevant in scenarios involving commercial transactions, construction projects, corporate governance, and financial arrangements. The Letter of Indemnity Form must be drafted in accordance with New Zealand law, particularly the Contract and Commercial Law Act 2017, and should clearly outline the scope of indemnification, claim procedures, and any limitations. It's essential for protecting business interests and managing risk exposure in various commercial contexts.
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1. Date and Parties: Full legal names and addresses of the indemnifier (party providing the indemnity) and the indemnitee (party being indemnified)
2. Subject Matter Reference: Clear identification of the transaction, activity, or circumstance to which the indemnity relates
3. Background/Context: Brief explanation of why the indemnity is being provided and relevant background information
4. Indemnity Clause: The core provision detailing the scope of the indemnity, including what losses, damages, or liabilities are covered
5. Duration: The period for which the indemnity remains valid and any conditions affecting its termination
6. Governing Law: Explicit statement that the letter is governed by New Zealand law
7. Execution Block: Signature blocks for all parties, including date of signing and witness provisions if required
1. Conditions Precedent: Include when the indemnity is contingent on certain conditions being met
2. Claim Procedure: Add when specific procedures for making claims under the indemnity need to be outlined
3. Insurance Requirements: Include when the indemnifier must maintain specific insurance coverage
4. Limitation of Liability: Add when there are specific caps or exclusions to the indemnity coverage
5. Notice Provisions: Include when specific requirements for giving notice of claims or circumstances are needed
6. Dispute Resolution: Add when specific dispute resolution procedures need to be established
7. Confidentiality: Include when the existence or terms of the indemnity need to remain confidential
1. Schedule 1 - Specific Losses Covered: Detailed list of specific types of losses or damages covered by the indemnity
2. Schedule 2 - Claim Form Template: Standard form for submitting claims under the indemnity
3. Schedule 3 - Required Insurance Details: Specific insurance requirements including types of coverage and minimum amounts
4. Appendix A - Related Documents: Copies or references to related agreements or documents relevant to the indemnity
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