Definition
A contractual obligation to compensate someone for harm or loss, essentially agreeing to take the financial hit if something goes wrong. It's the corporate version of "I've got your back," except written by lawyers and far less reassuring.
Example Usage
The contract included an indemnification clause requiring the vendor to cover any losses resulting from their defective products.
Origin
From Latin 'indemnis,' meaning 'unharmed,' through Old French into English legal usage in the 17th century
Fun Fact
Indemnification clauses are often the most heavily negotiated provisions in commercial contracts, with both sides trying to shift potential liability to the other party.
Source: Common legal terminology
Related Terms
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See “indemnification” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
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