In 1825, Haiti was forced to pay France what was then called the « debt of independence. » The payments were used to cover losses suffered by French plantation owners after the loss of land and slaves. While this type of compensation has been incredibly unfair, it is an example of many historical cases that show how compensation has been applied without compensation worldwide. An act of compensation protects those who have acted illegally from sanctions. This exception generally applies to public servants, such as police officers or government officials, who are sometimes forced to act illegally to assume responsibility for their duties. Such protection is often afforded to a group of people who have committed an illegal act of public interest, such as the assassination of a well-known dictator or terrorist leader. They would sign a compensation agreement with the parachute company. With the signing, the compensation agreement protects the company of paratroopers from legal action. A compensation agreement (sometimes called a « no-injury agreement ») can be a contract or part of a contract. In these cases, a compensation agreement is a contractual language that one of the parties compensates in a contract for certain acts that may prejudice the other party. Compensation is a contractual obligation of one party (compensation) to compensate for the damage suffered by the other party (the holder of damages) by the actions of the compensation holder or another party.
The obligation to compensate is generally, but not always, with the contractual obligation to « keep compensated » or « keep unscathed » coextensis. On the other hand, a « guarantee » is an obligation of one party that assures the other party that the guarantor will keep the promise of the third party in the event of a default. Compensation insurance is a way for a company (or individual) to obtain coverage against claims. This insurance protects the holder from paying the full amount of compensation, even if the holder is responsible for the cause of the damage. Pet kennels can sign a compensation agreement for owners before leaving their pet overnight.