To agree that one party will compensate another party for losses if specific actions or events occur describes which term?

• A. Negligence
• B. Indemnify
• C. Special Duty
• D. Liability

Answer: (B)

Indemnify is a contract-based commitment to reimburse or make whole another party for losses or damages that arise from defined actions or events. This describes the act of one party agreeing to compensate the other if specified risks occur, effectively shifting that financial risk to the indemnitor. It’s different from liability, which is the legal responsibility itself, and from negligence, which is failing to exercise reasonable care, or from a special duty, which refers to a particular obligation owed in a given context.