Letter Of Indemnity

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Letter Of Indemnity. LETTER OF INDEMNITY TO. A letter of indemnity is written by a third party on behalf of someone to cover against losses or damages.

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In each case this offer will usually be made in return for the owner taking on some non-contractual risk. Letters of indemnity are often used when transporting goods by ship. The most common example of such an instance is where the carrier is asked to deliver the cargo without production of the original bills of lading as the cargo has reached its destination before the bills of lading.

A letter of indemnity is a letter used in the world of business to protect a party against financial losses in the event that an obligation is not upheld.

Requirements for a Letter of Indemnity. In each case this offer will usually be made in return for the owner taking on some non-contractual risk. Letters of indemnity should include the names and addresses of both parties. Letters of indemnity act as an unofficial form of insurance in instances where a party is requested to step out of the bounds of its contracted obligations.