Affidavit and Indemnity

What is Affidavit and Indemnity?

Affidavit and Indemnity Bond is a document which affirms the other party to save him/her from loss caused to him/her by the conduct of the promisor himself, or the conduct of any other person. It is a document which serve as a security that in case of loss caused, the other person shall indemnify the same.

Why is Affidavit and Indemnity required?

An Indemnity Bond is a form of a surety that one provides while undertaking to indemnify and to assure the other that in event of possible losses/ damages of nature as mentioned in the bond and/ or due to the reasons provided in the bond, he shall be duly compensated. In simple words, an Indemnity Bond is an undertaking provided by a party entering into a contract promising to bear the losses in event of the breach of contract. Thus, when a party liable to perform the obligations as per the contract refuses to oblige, the defaulting party has the right to recover the damages and losses incurred by the defaulting party.

What should a Affidavit and Indemnity cover?

 

An Affidavit and Indemnity must contain the following:

• Name of the principal, surety and the obligee.

• Address of principal, surety and the obligee.

• The amount being lent/borrowed.

• The purpose for which the amount is being borrowed.

• The time period for which the amount is being lent.

• The interest to be levied on the amount.

• Condition of payment or the required obligation to be fulfilled by surety in case the obligee fails to do so.

Format for Affidavit and Indemnity

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DRAFT OF  AFFIDAVIT AND INDEMNITY





BY____________________

FAVOUR OF____________________

I, _______________ aged __ years, do hereby solemnly declare and say as follows:-

1. That I am employed with____________________. (Hereinafter referred to as "the bank").

2. That the Bank has presently taken residential premises being Situated at ______________ known as _________________(hereinafter referred to as "the said premises") situated at________________from _______________ on leave and license basis for the purpose of providing residential accommodation for me and my immediate family members.

3.  At my request, the Bank has permitted me to use the premises as per terms and conditions of the Agreement dated __________________, as perquisite to my service.

4. I do hereby declare, agree and undertake that:-

5  I shall vacate the said premises on the expiry or earlier determination of the said leave and license agreement dated ___________________ .

I shall use the premises only for the purpose of residence of myself and I shall not part with the possession of the premises or any part thereof to any one else.

I shall not commit any breach of any of the terms and conditions of the Agreement under which the Company has taken possession of the premises.

I confirm that I am aware of the terms and conditions of the Agreement under which the company has acquired the said premises on leave and licence basis.

I confirm that on happening of any of the following events, _____________shall be at liberty to demand and take possession of the said premises and I shall indemnify and keep ________________ indemnified against any loss or damage which __________________ may suffer or incur due to my non-compliance, intentioned or otherwise, with any of the following:-

                              i.                For not vacating the premises on termination of my employment with the company for any reasons whatsoever (whether any retirement, resignation or otherwise).

                             ii.                For not vacating the premises on my services being transferred from...... to any place outside........

6. On my committing breach of any of the terms and conditions of the Agreement under which the company holds the premises.

7. I further declare that the undertaking and assurance given by me in paragraph 4(d) above is and shall be binding on my family, my heirs, administrators, executors and legal representatives and any person staying in the said premises at the time of my death.

8. In the event of my committing any breach of any of the terms and conditions under which I have been allowed to use the premises ______________ shall be entitled without prejudice to his other rights to take such legal action of proceedings against me including criminal proceedings as ______________________ may lawfully be advised.

9. This undertaking-cum-indemnity shall be binding on me till I am occupying the said premises.

10 I confirm that what has been stated hereinabove is true to my own knowledge and that on the basis of the declaration made by me herein ___________________has permitted the bank the use of the premises.

Solemnly declared by the aforesaid

On this ____ day of ___________, 20__

Sworn Before me,

Dated this ___ day of _____ 20__

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Documents Required for Affidavit and Indemnity

No specific documents are required in order to draft and execute an affidavit bond. However, ID proofs of the parties in order to confirm the names and permanent addresses of the principal, surety and the obligee must be scrutinized. Moreover, the original agreement over which indemnity is being provided or asked for shall also be scrutinized.

Procedure for Affidavit and Indemnity

To execute or redeem an indemnity bond, the claimant or principal must comply with the terms of the indemnity bond. In most cases, the claimant must provide written notice that the obligor has failed to perform under the contract, and the claimant is looking to the guarantor or issuer of the indemnity bond for payment. The guarantor will likely contact the obligor to determine the problem and many times attempt to work out an arrangement beneficial to all parties. If this cannot be done, the guarantor, after verifying the obligor's failures, will pay the bond.

Legal Considerations for Affidavit and Indemnity

A person executing an affidavit and indemnity bond must make sure that all parties have the legal authority to enter into the bond. All the parties executing the bond must be of legal age to sign the bond and must do so without coercion or any undue influence. The parties signing the bond must be sane at the time of execution and should do so in the presence of witnesses.

How can a lawyer help to draft Affidavit and Indemnity?

While drafting bonds, it is important to know as to what terminology should be used while drafting the same as a small ambiguity in the terms can also jeopardize the claim of the parties. This is why it is crucial to have a documentation lawyer to assist you with the drafting of the bond. Being an expert in the area of documentation law, a documentation lawyer knows the nitty-gritty of the legal procedures and the requirements involved in drafting a bond. With the experience attained in the field, he/she can guide you with the right advice while entering into a bond and can make sure that such mistakes are eliminated that cannot be resolved even through further legal procedures.

• Disclaimer: The information contained in the sample document is general legal information and should not be construed as legal advice to be applied to any specific factual situation. Any use of the Site or document format DOES NOT create or constitute a solicitor-client relationship between LawRato or any employee of or other person associated with LawRato and a user of the Site. The information or use of documents on the Site is not a substitute for the advice of a lawyer.

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