This form provides boilerplate contract clauses that outline means of securing the funds for payment of any indemnity, including use of an escrow fund or set-offs.
Florida Indemnity Provisions — Means of Securing the Payment of the Indemnity Florida indemnity provisions refer to clauses included in contracts or agreements to protect one party (indemnity) from potential financial losses or liabilities arising from the actions or negligence of another party (indemnity). These provisions ensure that the indemnity compensates the indemnity for any damages, claims, or losses incurred. Securing the payment of indemnity is crucial in Florida, and various types of provisions serve this purpose. Some key types of Florida indemnity provisions include: 1. Broad Form Indemnity Provision: This provision mandates the indemnity to assume all liabilities, claims, and legal costs related to the indemnity's activities, regardless of fault or negligence by either party. 2. Limited Form Indemnity Provision: Unlike broad form indemnity, this provision limits the indemnity's liability to specific circumstances or losses caused solely by their negligent acts or omissions. The scope of indemnity is narrower and more specific. 3. Comparative Fault Indemnity Provision: This provision combines elements of both broad and limited form indemnity provisions. It allows the indemnity to share the financial burden proportionately based on their respective degrees of fault or negligence. 4. Intermediate Indemnity Provision: Also known as the intermediate form indemnity provision, it falls between broad and limited forms. It requires the indemnity to indemnify the indemnity for damages caused partially by the indemnity's actions or negligence. To secure the payment of indemnity, different strategies can be employed: a. Insurance Bonds: The indemnity can obtain insurance bonds, such as surety bonds or performance bonds, which guarantee compensation to the indemnity in case of default. b. Contractual Hold backs: The parties can agree to withhold a portion of the indemnity's payment until the indemnity obligations are fulfilled. This ensures that funds are available to cover any potential liabilities. c. Escrow Accounts: Both parties may agree to deposit funds into an escrow account, which will be used to pay for indemnity obligations if they arise. This acts as a safeguard for the indemnity's ability to fulfill their obligations. d. Liens and Guarantees: The indemnity can provide liens or guarantees on specific assets or properties, granting the indemnity a legal claim on such assets in case of non-payment of indemnity. e. Indemnity Agreements: These formal agreements clearly define the indemnity obligations, payment terms, and consequences for non-payment. They help secure the payment of indemnity by establishing legal recourse if the indemnity fails to fulfill their obligations. In conclusion, Florida indemnity provisions play a crucial role in securing the payment of indemnity. Through clauses like broad form, limited form, comparative fault, and intermediate provisions, parties can determine the extent of liability and potential financial obligations. Various means, including insurance bonds, contractual hold backs, escrow accounts, liens, and indemnity agreements, aid in securing the payment of indemnity and ensuring financial protection for both parties involved.Florida Indemnity Provisions — Means of Securing the Payment of the Indemnity Florida indemnity provisions refer to clauses included in contracts or agreements to protect one party (indemnity) from potential financial losses or liabilities arising from the actions or negligence of another party (indemnity). These provisions ensure that the indemnity compensates the indemnity for any damages, claims, or losses incurred. Securing the payment of indemnity is crucial in Florida, and various types of provisions serve this purpose. Some key types of Florida indemnity provisions include: 1. Broad Form Indemnity Provision: This provision mandates the indemnity to assume all liabilities, claims, and legal costs related to the indemnity's activities, regardless of fault or negligence by either party. 2. Limited Form Indemnity Provision: Unlike broad form indemnity, this provision limits the indemnity's liability to specific circumstances or losses caused solely by their negligent acts or omissions. The scope of indemnity is narrower and more specific. 3. Comparative Fault Indemnity Provision: This provision combines elements of both broad and limited form indemnity provisions. It allows the indemnity to share the financial burden proportionately based on their respective degrees of fault or negligence. 4. Intermediate Indemnity Provision: Also known as the intermediate form indemnity provision, it falls between broad and limited forms. It requires the indemnity to indemnify the indemnity for damages caused partially by the indemnity's actions or negligence. To secure the payment of indemnity, different strategies can be employed: a. Insurance Bonds: The indemnity can obtain insurance bonds, such as surety bonds or performance bonds, which guarantee compensation to the indemnity in case of default. b. Contractual Hold backs: The parties can agree to withhold a portion of the indemnity's payment until the indemnity obligations are fulfilled. This ensures that funds are available to cover any potential liabilities. c. Escrow Accounts: Both parties may agree to deposit funds into an escrow account, which will be used to pay for indemnity obligations if they arise. This acts as a safeguard for the indemnity's ability to fulfill their obligations. d. Liens and Guarantees: The indemnity can provide liens or guarantees on specific assets or properties, granting the indemnity a legal claim on such assets in case of non-payment of indemnity. e. Indemnity Agreements: These formal agreements clearly define the indemnity obligations, payment terms, and consequences for non-payment. They help secure the payment of indemnity by establishing legal recourse if the indemnity fails to fulfill their obligations. In conclusion, Florida indemnity provisions play a crucial role in securing the payment of indemnity. Through clauses like broad form, limited form, comparative fault, and intermediate provisions, parties can determine the extent of liability and potential financial obligations. Various means, including insurance bonds, contractual hold backs, escrow accounts, liens, and indemnity agreements, aid in securing the payment of indemnity and ensuring financial protection for both parties involved.
