Tax Indemnity
/ˈtæks ɪnˈdɛm.nɪ.ti/
Definitions
- (n.) A contractual obligation where one party agrees to compensate the other for tax liabilities or losses arising from specific events or transactions.
The buyer sought a tax indemnity to protect against unforeseen tax claims resulting from the acquisition.
Forms
- tax indemnity
- tax indemnities
Related terms
See also
Commentary
A tax indemnity typically appears in acquisition agreements to allocate tax risk between parties; clarity on scope and duration is crucial for enforceability.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.