As explained in our last blog about Breach of Contract and Remedies, Brodies have recently launched the Contracting Compass initiative, which provides insight on issues of English law relevant to oil and gas contracts.

The initiative comprises a series of seminars, with each accompanied by a dedicated white paper.

Recognising that the landscape of the contract is sometimes difficult to navigate, each seminar and paper highlights a key clause from the contract, focuses on particular points of English law and commercial practice most relevant to the clause concerned, and heightens awareness of the landscape as a whole.

Download the White Paper

In the second of the topics covered in the 2017 Contracting Compass series, we have focused on the Indemnity Clause. Access the full White Paper here.

Where an indemnity regime in a typical oil and gas contract can be complex and comprise complicated language, this White Paper offers insight into a structured and systematic approach for breaking it down.

So how do we take a daunting clause and difficult language and make it manageable? The White Paper proposes that an Indemnity Clause can be broken down with simple steps, such as five questions.

The five step process

  • STEP 1 - "Who" is assuming the indemnity obligation and who is receiving the benefit?
  • STEP 2 - To "What" does the indemnity apply?
  • STEP 3 - "Where" does the indemnity apply?
  • STEP 4 - "When" does the indemnity apply?
  • STEP 5 - "How" does the indemnity apply?

The White Paper analyses each of the five steps in two parts. Part one looks at each question from the practical perspective of why the indemnity matters and what purpose it serves, as well as how it can best be drafted. Part two complements the practical perspective by looking at the law, including those principles most relevant to understanding and analysing an indemnity regime.


Greg May