Execution of Indemnity Agreements: A Matter of Authority

When a person acts on behalf of a business organization (an LLC, partnership, corporation, etc.), that person must be authorized by the business organization.  This concept is critical in cases of executing a General Indemnity Agreement – an enforceable GIA must be an authorized GIA.  Hopefully, when the GIA is executed, it is put aside and questions of enforceability never come up.  However, if a GIA must be enforced, the steps the surety took at the front end to complete execution of the document will play a big factor in determining the agreement’s enforceability.  At the front end, when the GIA is being executed, the surety must ensure that formalities are followed, including the signatories’ authorities.  On this Virtual Seminar, Robert Duke, Surety Counsel for Markel Surety, will explore the various basis of authority and apply those concepts to taking indemnity from an LLC, a partnership, and a trust.