Letter of indemnity,
Definition of Letter of indemnity:
A clearing letter (LOI) is an agreement document that guarantees compliance with certain conditions between the two parties. These letters are traditionally written by third party entities, such as banks or insurance companies, who are willing to compensate one party if the other party fails to meet its obligations. In other words, the main function of the letter's intent is to ensure that Part A does not incur losses if Part A does not pay. The concept of compensation relates to the release of a person and the letter of compensation describes specific steps that will be taken to release part of the liability.
The compensation letter states that the first party is liable for damages to the other party or the other party's property and that the third party has paid compensation in accordance with the established agreement. In this sense, a letter of intent, often referred to as a liability or compensation liability, is similar to an insurance policy.
Any loss or damage to the other party (first party) by a party (for example, a bank or insurance company) by a pledge (for example, a party) Compensation Guarantee, also known as Compensation Guarantee, is the first part of the Compensation Guarantee to protect against losses (or losses) resulting from actions.
Meaning of Letter of indemnity & Letter of indemnity Definition