In order to attract highly qualified professionals to a board of directors, it is customary to have a compensation agreement. The compensation agreement protects the board of directors from debts, losses and shares that may result from activity on the company`s board of directors. However, compensation clauses are widely used in commercial contracts for financial reasons. A buyer can seek compensation for poor quality goods from a producer, protect cash flow or allow a new order elsewhere. Sometimes governments, businesses or an entire industry have to bear the cost of bigger problems on behalf of the public, such as epidemics.B. According to Reuters, for example, Congress authorized $US1 billion to fight an outbreak of avian influenza that devastated the U.S. poultry industry in 2014 and 2015. The U.S. Department of Agriculture has sent $600 million for the elimination and disinfection of viruses and $200 million in compensation. In this case, the hotel is protected from losses, either by John directly or by a third party, the travel agency. The guarantee will only come into effect if the main obligation indicated by the compensation clause (in this case, john, who pays for the damage it causes) cannot be met. Compensation and guarantees are not «or» scenarios; instead, they offer protective layers.
Compensation is the basis of many insurance contracts; for example, a vehicle owner may acquire different types of insurance in compensation for different types of losses resulting from the operation of the car, such as. B damage to the car itself or medical expenses after an accident. In an agency context, a client may be required to compensate his representative for the debts incurred during the performance of the obligations related to the relationship. While events that result in compensation can be contractually stipulated, the steps to be taken to compensate the injured person are largely unpredictable and maximum compensation is often explicitly limited. Britton and Time Solicitors can verify whether the contract contains an insurance clause and whether the nature and amount of the insurance is sufficient to meet probable liability under the compensation clause. We always ask for copies of the insurance documents. To explain a compensation agreement, it is first necessary to define the concept of «compensation». Compensation is defined as «the obligation to obtain losses, damages or liabilities incurred by another (Black`s Law Dictionary). Compensation has the general importance of «keeping it unscathed,» i.e., one party considers the other to be harmless for loss or damage. Some different meanings for the term «compensation»: although compensation agreements have not always had a name, they are not new.
Historically, compensation agreements have helped to ensure cooperation between individuals, businesses and governments. Conversely, it is also the opposite, and a well-written compensation clause will work to protect your business. Many high-risk activities, such as skydiving or heliskiing, require individuals to sign a compensation contract before they can participate. This protects the company or company from liability in the event of an accident. The agreement can be described in return (usually a sum of money) used to secure the agreement. The agreement specifies the specific conditions for the safety of compensation and compensation. It`s a pretty complicated legal language. ALIGNED recommends that you carefully review the compensation agreement with a qualified lawyer before entering into the contract to determine the extent of your company`s liability.
- Posted by wbase
- On 20 diciembre, 2020
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