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Indemnity Questions

Indemnity is the protection of loss and damages that are filed by another person. Indemnity agreements are usually set into place between two or more parties to protect each party from certain liabilities resulting from the other party's negligence. Indemnity insurance is used by entities to protect themselves from visitors who may receive injuries while on the premises. Below are a few of the more commonly asked questions regarding indemnity that has been answered by Experts.

My wife of 3 years, is being sued for a general indemnity agreement she signed 10 years ago for her ex-husbands construction company. Can my savings account be frozen if it's not a joint account with my wife and in my name only. If so what options do I have to protect my savings?

Under Family Code 910, you are liable for your spouse's debts that were incurred before and during your marriage. And if you cannot prove otherwise, all assets are considered community property. This means that your assets can be froze based off the idea that your account would be 1/2 of your spouse's property, regardless of whose name is on that account.

At this point, if you start to shift your assets to a third party, it will appear that you are trying to hide your assets.

There is an exception to this rule: If you have a separate account and your spouse has no access or signing authority to that account and the only funds that go into the account are your earnings, this account would be exempt from any creditors seeking assets from your spouse.

Aside from this, marital assets are subject to any judgments. Usually, the court will not consider a freeze order unless there is some form of evidence that shows misappropriation or theft. There usually isn't much of a concern if there is just a lawsuit for an unpaid debt.

Can a local municipality require that I provide an indemnity bond in order to get a city license?

With the recent decline of revenue, cities have begun to require this type of license in order to have some form of compensation coming to the city. While this may seem unfair, this type of requirement is legal and valid. If you are performing work that involves any type of state code that could inadvertently hold the city liable, a bond of this nature is valid. For example, if you build a structure that abuts city property, both parties involved would be liable in the event of a defect in your work.

Is mutual indemnity a firewall or understanding that neither party agrees to defend the other? What is mutual indemnity and is it better than not having "mutual" in the term?

Mutual indemnity expresses each party to indemnify the other party, but only for negligent acts. This term is better because if you use a regular indemnity clause, the risk is assumed for any problem that occurs. With the mutual indemnity clause, you will only be held responsible for the issues that arise from your own negligence. Take notice whether or not the clause states how much negligence. If there is no mention, you may find yourself liable for the entire amount. In most situations, you will be able to specify an agreement for mutual indemnity for the amount of negligence covered by each party. In other words, if you are 25% negligent and the other person is 75% negligent, this is the amount each of you will pay.

With regard to an Indemnity Agreement, there are at least 25 topics covered in the sample agreement. My question asks if all the topics are required in such an agreement for the state of CA. Are you able to call a document an indemnity agreement?

There are no special requirements that dictate what the document can be called or what can be listed in it. When making a contract, the parties involved in the contract are free to decide what is in the contract and how the contract reads. Out of the 25 topics, if only a few topics pertain to your situation, only add the ones that relate to that situation. The document will be a legal binding document as long as both parties agree to the wording and sign.

Indemnity agreements are safeguards that protect an individual from liability due to negligence. If you conduct business that may run the risk of liability, you should educate yourself on indemnity. If you would like to learn more about indemnity, you should ask an Expert to assist you in making the decisions that best fit your individual situation.

Ask a Lawyer

Tina
Tina, Lawyer
Category: General
Satisfied Customers: 8603
Experience:  JD, BBA Over 25 years legal and business experience.
4460311
Type Your Legal Question Here...
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19 Lawyers are Online Now

How JustAnswer Works:

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Tina
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JD, BBA Over 25 years legal and business experience.
Ely
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Private practice with focus on family, criminal, PI, consumer protection, and business consultation.
FiveStarLaw
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Satisfied Customers: 8189
25 years of experience helping people like you.

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