Question

Situations under which letters of indemnity are obtained

Answer 1

Answer:

is a contractual document that guarantees certain provisions will be met, between two parties. Such letters are traditionally drafted by third-party institutions like banks or insurance companies, which agree to pay financial restitution to one of the parties, should the other party fail to live up to its obligations. In other words, the chief function of an LOI is to ensure that Party A won't ultimately suffer any losses if Party B falls delinquent.