Letter Of Indemnity

What is a 'Letter Of Indemnity'

A letter of indemnity is a letter guaranteeing that contractual provisions will be met, otherwise financial reparations will be made.

2. A letter requesting replacements for lost shares from a company's treasury.

BREAKING DOWN 'Letter Of Indemnity'

1. The principal behind a letter of indemnity is the guarantee that losses will not be suffered, should certain provisions of a contract not be met.

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RELATED FAQS
  1. When do I need a letter of credit?

    Learn more about the function of a letter of credit for both the buyer and the seller, and get some examples showing when ... Read Answer >>
  2. When are you legally required to get a letter of credit?

    Learn how exporters or importers who deal in international trade use letters of credit to ensure that transactions are safe, ... Read Answer >>
  3. Can entities other than banks issue letters of credit?

    Obtaining a letter of credit from a non-bank is legally acceptable according to the ICC, but companies tend to prefer to ... Read Answer >>
  4. What is a bank's legal liability when issuing a letter of credit?

    Learn the responsibility of banks that issue letters of credit Letters of credits ensure payment on transactions between ... Read Answer >>
  5. What content does a letter intent have to have?

    Review some of the standard language that ought to be included in a letter of intent between two parties in a business transaction. Read Answer >>
  6. What's the difference between a letter of credit and a bank guarantee?

    Learn how letters of credit and bank guarantees differ, how they are used by banks and companies, and how buyers apply to ... Read Answer >>
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