Indemnity & indemnification

The practice exam 1 defines:

Indemnity clauses that are non-specific, poorly written, or not understood can lead to enormous amounts of unintended legal exposure.

In this case, I understand indemnity as a vague clause on responsibilities or resolutions if something goes wrong; an unclear system through which the practice is defined in the contract.


From a previous school course I remember the following question:

If the contractor fails to complete the work on time, the contractor may be charged a sum of money to reimburse the owner. This sum can be called: Indemnification

Those two descriptions seem quite different to me. Any additional thoughts would be appreciated. Thanks

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Hi Oana-
I just did a quick search and found this detailed explanation that explains indemnity how I understand it: https://www.investopedia.com/terms/i/indemnity.asp

I hope this helps!
Marc

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very helpful link that explains indemnity. thanks

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