Indemnification Basket & Cap

Contractual thresholds defining the minimum claim size before a seller must pay (basket/deductible) and the maximum total indemnity exposure (cap).

Buyer Example

In a ₹25 Cr Noida IT staffing acquisition, the buyer negotiates a ₹10 Lakh tipping basket and a cap of 30% of purchase price (₹7.5 Cr) for general warranties, with an uncapped carve-out specifically for tax and title warranty breaches.