Opinion ID: 1676821
Heading Depth: 2
Heading Rank: 2

Heading: The Validity of the Indemnification Agreement

Text: The indemnitors executed the indemnity agreement to guarantee the obligations undertaken by AMCI as principal on the bonds to be issued by Acstar. The indemnitors personally guaranteed the debt, obligations, or performance of AMCI. Acstar's claim of indemnity against AMCI as principal and against the Braggs and Clines as indemnitors was derived solely from the bonds issued by Acstar. The trial court held that because the underlying bonds were null and void, there was no consideration for the underlying contract between the indemnitors and Acstar. Because we conclude that the bonds were valid and enforceable, we also conclude that the indemnification agreement was valid and that the summary judgment for the individual indemnitors is due to be reversed also.