Document background
The General Indemnity Agreement is a crucial risk management instrument used in various commercial contexts under Hong Kong law. It is typically employed when parties need to clearly define and allocate potential risks and liabilities in their business relationship. This document becomes necessary in situations involving significant business transactions, project undertakings, or ongoing commercial relationships where one party agrees to protect another against specific losses or liabilities. The agreement comprehensively addresses the scope of indemnification, claim procedures, payment obligations, and enforcement mechanisms, all within the framework of Hong Kong's legal system. It may be required by insurers, financial institutions, or as part of larger commercial arrangements, and often accompanies other transaction documents to provide additional security and risk protection.
