Have you ever wondered what all this paperwork is when you rent a car? There is a good chance that this is a compensation agreement. It`s actually a promise you won`t sue the owner. A sworn statement and a compensation agreement are a particular type of compensation agreement. It serves not only to protect owners, but also corporate shareholders. A sworn statement is a signed affidavit and the signatory is called „deffident. To formalize the insurance under oath, it should be signed in front of a public servant, for example. B a notary. A sworn statement and compensation agreement is a signed declaration in which the Affiant agrees to compensate the holder of the contract. A sworn statement and compensation agreement is more formal than the agreement you sign when you rent a car. It is most often used by companies to protect their shareholders and board members. These agreements stipulate that the company compensates these individuals and frees them from their responsibility.
Therefore, a client suing the company cannot sue individual shareholders for their personal assets. To compensate someone is to compensate them. Therefore, a compensation agreement includes a compensation commitment. It also means a release of responsibilities. If you sign a compensation contract for the rental of a car, you agree not to sue the tenant in case of damage due to rent. You also agree that the tenant is not responsible for the damage you inflict on others in the car. Evelyn Broderick has been a writer since 2004. Their work was published by the Jewish Alliance for Women in Science. She has a bachelor`s degree in chemistry and biology from Macaulay Honors College and is an MD/Ph.D rehanant in immunology at Sloan Kettering. She is also a member of the New York Academy of Sciences.