Deed Of Indemnity Template for New Zealand

A Deed of Indemnity is a formal legal instrument under New Zealand law that creates a binding obligation for one party to compensate another party for specified losses, damages, or liabilities. This document provides comprehensive protection by outlining the scope of indemnification, claim procedures, limitations, and enforcement mechanisms. It must comply with New Zealand's Contract and Commercial Law Act 2017 and Property Law Act 2007, and requires proper execution as a deed to ensure its enforceability. The document typically includes detailed provisions for claim notification, handling procedures, and any limitations or exclusions to the indemnity coverage.

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What is a Deed Of Indemnity?

The Deed of Indemnity is a crucial legal instrument in New Zealand's corporate and commercial landscape, designed to provide protection and risk allocation between parties. It is commonly used when appointing directors, in corporate restructuring, during commercial transactions, or when providing professional services. The deed creates a legally binding commitment for one party to protect another against specified losses, liabilities, or claims. This document type is particularly important in New Zealand's business environment, where directors and officers seek protection against personal liability, and companies need to manage risk effectively. The deed must comply with New Zealand legislation, including the Companies Act 1993 and Contract and Commercial Law Act 2017, and requires formal execution to be valid. It typically includes comprehensive details about the scope of indemnification, claim procedures, limitations, and enforcement mechanisms.

What sections should be included in a Deed Of Indemnity?

1. Parties: Identifies and defines all parties to the deed, including full legal names and addresses

2. Background: Sets out the context and circumstances leading to the deed of indemnity

3. Definitions and Interpretation: Defines key terms used in the deed and establishes interpretation principles

4. Indemnity: Core section detailing the scope, extent and nature of the indemnity being provided

5. Limitations and Exclusions: Specifies any limitations, caps, or exclusions to the indemnity

6. Claims Procedure: Sets out the process for making and handling indemnity claims

7. Duration and Termination: Specifies the term of the indemnity and any termination provisions

8. Confidentiality: Obligations regarding confidentiality of the deed and related information

9. Notices: Specifies how formal notices under the deed should be given and when they are deemed received

10. General Provisions: Standard boilerplate provisions including governing law, entire agreement, and amendment procedures

11. Execution: Formal execution block meeting requirements for deeds under New Zealand law

What sections are optional to include in a Deed Of Indemnity?

1. Group Company Provisions: Include when the indemnity extends to or is given by group companies

2. Insurance Requirements: Include when specific insurance must be maintained to support the indemnity

3. Security: Include when security is required to support the indemnity obligations

4. Step-In Rights: Include when one party needs rights to step in and manage claims

5. Tax Provisions: Include when there are specific tax implications that need to be addressed

6. Assignment and Transfer: Include when transfer rights need to be specifically addressed

7. Third Party Rights: Include when rights are to be extended to or excluded from third parties

What schedules should be included in a Deed Of Indemnity?

1. Indemnified Matters: Detailed list or description of matters covered by the indemnity

2. Claims Procedures: Detailed procedures for notification and handling of claims

3. Claim Form: Standard form for making indemnity claims

4. Security Details: Details of any security provided to support the indemnity

5. Related Agreements: List of agreements related to or affected by the indemnity

6. Authorized Representatives: List of persons authorized to act in relation to the indemnity

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

New Zealand

Publisher

Genie AI

Cost

Free to use

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