An Indemnity Agreement is a contract between two parties in which one party agrees to compensate the other for any losses or liabilities resulting from an act, omission, or breach of contractual or legal obligation. The agreement specifies the type and extent of financial damages that could be sought in the event of a dispute, loss, or wrongful action. Indemnity Agreements are often used between employers and employees, as well as buyers and sellers of products or services. By signing an Indemnity Agreement, both parties acknowledge mutual accountability and ensure protection against any potential harm caused by one party to the other.