Document background
A Release And Indemnity Agreement is a crucial risk management tool in South African business and legal practice. It is commonly used when parties wish to settle disputes, manage potential liabilities, or allocate risks in business transactions. The agreement combines two key elements: a release of liability for past or existing claims, and an indemnification against future claims or losses. Under South African law, these agreements must be carefully drafted to ensure enforceability, particularly considering the Consumer Protection Act's requirements and constitutional rights. They are frequently used in corporate transactions, settlement agreements, employment terminations, and various commercial arrangements where risk allocation is necessary. The document must be specific about what is being released and indemnified, while remaining compliant with public policy and legal principles regarding the limitation of liability.
