INDEMNIFICATION AND REPURCHASES Clause Samples

The "Indemnification and Repurchases" clause requires one party to compensate the other for losses or damages arising from specific breaches or issues, and may also obligate the responsible party to repurchase certain assets or interests if problems occur. In practice, this clause often applies when a seller has made representations or warranties about an asset that later prove to be false, triggering the seller’s duty to both cover the buyer’s losses and potentially buy back the affected asset. Its core function is to allocate risk and provide a clear remedy for breaches, ensuring that the non-breaching party is protected from financial harm and has recourse if the transaction does not proceed as promised.