A Letter of Indemnity (LOI) is a written undertaking document by a bank or insurance company who promises to act as a third party on behalf of the first party in a transaction or contract. This third party covers the specific loss or damage arising a failure to act to the second party in the agreement caused by the first party. There are two different letters of indemnity: letters of indemnity for quantitative clauses and letters of indemnity for non-quantitative clauses. (Also, called as an Indemnity Bond or Bond of indemnity)
Related Definitions in the Project: The Project Management; Project Contract
