Outside of the representations and warranties in a purchase agreement for the purchase and sale of a business, often the other most highly negotiated provisions are the indemnification provisions.

According to Black's Law Dictionary, indemnity is "a duty to make good any loss, damage, or liability incurred by another." It's possible to limit the scope of that duty during contract negotiations.

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. Khadija Khartit is a strategy, investment, and funding expert, and an educator of fintech ...

Indemnification is used for risk allocation Indemnification may include defense obligation Indemnified party is entitled to reimbursement for covered losses Indemnification can be complex and heavily ...

What Is the Indemnification Method? The indemnification method calculates the termination payments when a swap is ended early and the holder has accepted an offer of prepayment. The indemnification ...