A legally binding promise whereby a party undertakes to accept the risk of loss or damage another party may suffer. For example, where an entity hires a venue to host a conference it may indemnify the owner of that venue against losses that may be suffered if attendees damage the venue. An indemnity may give rise to a contingent liability. A guarantee can only be given by an accountable authority of a non-corporate Commonwealth entity in accordance with section 60 of the PGPA Act and the Finance Minister's delegation of this power to accountable authorities.
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26/11/2024
