An indemnity is an obligation on one party to make good all the loss suffered by another party in particular circumstances. Unlike a damages recoverable in a normal court claim, the party giving indemnity cannot argue that the losses are too remote, or that the recipient of the indemnity should have mitigated its losses, or did not properly or reasonably incur those losses.Simply put, if one party gives an indemnity to another, then whatever the losses suffered by the recipient, the giver of the indemnity has to pay those losses. It does not require the party giving the indemnity to have been negligent.
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