Legal Definitions - indemnitee

An indemnitee is an individual or entity who is protected from potential financial loss or liability by another party, known as the indemnitor. This protection typically arises from a contractual agreement where the indemnitor promises to compensate the indemnitee for specific losses, damages, or legal costs that may occur. In essence, the indemnitee is the party who receives the benefit of an indemnity.

Here are some examples to illustrate the concept of an indemnitee:

• Business Contract: A small marketing agency hires a freelance graphic designer to create a logo for one of its clients. The contract between the agency and the designer includes a clause stating that the designer will indemnify the agency against any claims of copyright infringement related to the logo design. If a third party later sues the marketing agency, claiming the logo infringes on their existing copyright, the marketing agency would be the indemnitee.

  Explanation: The marketing agency is the indemnitee because they are the party receiving the promise of protection and compensation from the graphic designer against potential legal claims arising from the logo's design.

• Real Estate Transaction: During the sale of a commercial property, the buyer discovers a potential environmental contamination issue that could lead to future cleanup costs. The seller agrees to an indemnity clause, promising to cover any future costs or liabilities the buyer might incur due to this specific pre-existing contamination. In this agreement, the buyer is the indemnitee.

  Explanation: The buyer is the indemnitee because they are the party being protected by the seller from potential financial losses and legal responsibilities associated with the environmental contamination.

• Event Planning: A community center rents out its main hall for a large charity event. The rental agreement includes a provision where the charity organization agrees to indemnify the community center against any lawsuits or damages resulting from injuries sustained by event attendees during the event. Should an attendee slip and fall, suing the community center for negligence, the community center would be the indemnitee.

  Explanation: The community center is the indemnitee because they are the party receiving the promise of protection and financial coverage from the charity organization against potential liability for injuries occurring at the event.