Practitioners drafting or advising on agent agreements with indemnity clauses should note that a broadly worded contractual indemnity covering 'direct or indirect' consequences of theft operates as a sui generis contractual obligation independent of any trust obligations, meaning Trustee Act s 85 relief cannot reduce liability under such an indemnity even where the trustee acted honestly and reasonably. The case also highlights the critical importance of ensuring contractual definitions align with actual commercial practices when successive agreements are executed.
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