Demand for Indemnity from a Limited Liability Company by Member
Definition and meaning
The Demand for Indemnity from a Limited Liability Company by Member is a formal request made by a member or manager of a limited liability company (LLC) for compensation for losses or expenses incurred while acting on behalf of the company. This document is essential for members seeking protection under the company’s operating agreement, which typically outlines indemnification provisions.
How to complete the form
To complete the Demand for Indemnity, follow these steps:
- Insert your name as the member or manager of the company.
- Provide the name of the company and specify its type.
- Detail the nature of the claim, focusing on the circumstances that led to the demand.
- Outline the resolution of the claim, if applicable.
- Itemize the expenses, including attorney fees and any other costs related to the claim.
- Sign and date the document, ensuring it is presented to the appropriate company representative.
Who should use this form
This form is appropriate for any member or manager of an LLC who seeks indemnification for claims made against them due to their role within the company. If you have faced legal challenges while executing duties for the LLC or have incurred expenses that you believe the company should cover, this demand form would be necessary.
Key components of the form
The Demand for Indemnity contains several critical components:
- Identification of the claim: A clear description of the claim against the member or manager.
- Expenses and fees: A breakdown of financial costs incurred, including legal fees.
- Company details: Identification of the LLC and relevant operating agreements.
- Date and signature: Essential for validating the demand.
Form popularity
FAQ
A demand letter from a contract party to another party notifying it of a claim and demanding indemnity and defense under the terms of the contract.
Generally, indemnification refers to a situation in which one party (the ?indemnifying? party) agrees or is required to cover the costs, losses and/or expenses experienced by another party (the ?indemnified? party).
The supplier indemnifies the customer where the supplier breaches the contract. It also requires the customer to indemnify the supplier where the customer breaches the contract.
Indemnification usually transfers risk between the parties to the contract. Limitation of liability prevents or limits the transfer of risk between the parties. With those basic concepts in mind, think about the risks that arise out or relate to the contract.
Under a typical indemnification provision, the employer agrees to indemnify the executive against lawsuits, claims, or demands against the employee resulting from the employee's good faith performance of his or her duties and obligations.
To indemnify means that the seller will reimburse the buyer for a loss or liability. To defend means that the seller will pay the buyer's legal fees for suits that arise from specific risks articulated in the contract.
?The elements of a cause of action for indemnity are (1) a showing of fault on the part of the indemnitor and (2) resulting damages to the indemnitee for which the indemnitor is contractually or equitably responsible.? Expressions, supra, 86 Cal. App.
An indemnification clause is a legally binding agreement between two parties specifying that one party (the indemnifying party) will compensate the other party (the indemnified party) for any losses or damages that may arise from a particular event or circumstance.