In a contract what is the difference between indemnify and defend? I often see them used together though I believe there is a subtle difference. If party x is to indemnify party y then x can't sue y. But if y gets in trouble then x will pay for the lawyers to defend y and that's what "defend". Do I understand correctly or what is the difference? A simple example illustrating the difference between indemnify and defend would be appreciated.
Strictly speaking, if party X agrees to indemnify party Y for damage Z, then X is only agreeing to pay Y for realized damages Z.
Example: I agree to print something you wrote about about Acme. In exchange, you agree to indemnify and defend me against any defamation claims by Acme. Acme sues me for defamation.
Since you agreed to defend me, you have to provide a legal defense against Acme's lawsuit. If you didn't agree to indemnify me, and Acme wins a judgment, you wouldn't be obligated to pay the judgment.
If you only agreed to indemnify me, you could choose to let the lawsuit run its course without providing any legal defense. Indemnification only requires you to pay any judgment Acme might win.