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It's common for the seller to promise to pay for the buyer's losses if it made a serious misrepresentation about what's being sold. For example, if the seller promised that it owned the asset but it turns out that someone else actually claims to own it, the buyer could get brought into a lawsuit and have unexpected costs (or even lose the asset). In that case, the seller promises to pay for the buyer's losses. This promise is called an "indemnity".
While it's common for the seller to make an indemnity promise to the buyer, you can limit your liability. We'll go over how here.
A minimum liability basket means that the buyer can't claim any amounts against you until its losses reach a certain amount. For example, the buyer cannot claim anything against you until the amount claimed is at least $1,000.
A maximum liability cap means the buyer cannot claim over a certain amount against you. For example, no matter how bad its losses are, the buyer is not allowed to claim more than $5,000 against you.