Which term means an agreement to compensate another for losses under certain events?

Which term means an agreement to compensate another for losses under certain events?

• A. Special Duty
• B. Indemnity
• C. Negligence
• D. Indict

Answer: (B)

Indemnity is a promise to compensate someone for losses that arise from specified events. It’s about restoring the injured party to the financial position they were in before the loss, typically through reimbursement or payment for damages when those defined risks occur. In contracts and insurance, indemnity provisions or policies shift the risk by committing one party to cover the other’s losses from particular events, such as damages, lawsuits, or claims. Special duty describes a higher or specific standard of care owed in certain relationships or situations, not a mechanism for paying losses. Negligence is the failure to meet a required standard of care, which can lead to liability, but it is the breach, not the agreement to compensate. Indict is a formal criminal accusation, unrelated to compensating losses.

Indemnity is a promise to compensate someone for losses that arise from specified events. It’s about restoring the injured party to the financial position they were in before the loss, typically through reimbursement or payment for damages when those defined risks occur. In contracts and insurance, indemnity provisions or policies shift the risk by committing one party to cover the other’s losses from particular events, such as damages, lawsuits, or claims.

Special duty describes a higher or specific standard of care owed in certain relationships or situations, not a mechanism for paying losses. Negligence is the failure to meet a required standard of care, which can lead to liability, but it is the breach, not the agreement to compensate. Indict is a formal criminal accusation, unrelated to compensating losses.