Hold Harmless Agreement Insert Option Choice
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What does hold harmless agreement mean?
A hold harmless agreement is a clause typically included in construction contracts to release one party from consequences or liabilities due to the act of the other. ... A hold harmless agreement clause in a contract document should have specific language to protect the contractor or the intended parties.
What is a hold harmless indemnity agreement?
A Hold Harmless (Indemnity) Agreement is used between two parties (such as an employer and employee) to establish protection from liabilities, losses, claims, or damages for one of the parties during their involvement in an activity.
What does a hold harmless agreement mean?
A provision in an agreement under which one or both parties agree not to hold the other party responsible for any loss, damage, or legal liability. In effect, this clause indemnifies the parties on a unilateral or reciprocal basis (as the case may be). See also indemnity clause.
What is the difference between a hold harmless agreement and an indemnity agreement?
Double troubleor a distinction with a difference? At least one authority claims that hold harmless protects against losses and liabilities, while indemnify protects against losses alone.
What is a indemnity agreement?
An indemnity agreement is a contract that 'holds a business or company harmless' for any burden, loss, or damage. An indemnity agreement also ensures proper compensation is available for such loss or damage.
Is indemnity the same as hold harmless?
Indemnity is compensation for loss or damages. In a legal sense, it also refers to an exemption from liability for damages. Indemnity is based on a contractual agreement made between two parties, in which one party agrees to pay for potential damages or losses caused by the other party.
What does hold harmless mean in legal terms?
Hold Harmless Law and Legal Definition. A hold harmless agreement is one in which one person agrees to assume the liability and risk that may arise from the obligation, and protects and indemnifies the other party against having to bear any loss. ... A hold harmless agreement is also called a save harmless agreement.
What is a hold harmless agreement?
A Hold Harmless Agreement is a legal agreement that states that one party will not hold another party liable for risk, often physical risk or damage. The Hold Harmless Clause can be one-way (unilateral) or two-way (reciprocal) agreements and can be signed before or after an activity takes place.
What does it mean to hold harmless and indemnify?
It defines hold harmless as follows: To absolve (another party) from any responsibility for damage or other liability arising from the transaction; INDEMNIFY. (It defines indemnify as follows: To reimburse (another) for a loss suffered because of a third party's or one's own act or default.
Do hold harmless agreements hold up in court?
With a hold harmless clause, you claim that you not only indemnify and protect the other party but that you hold them completely harmless. You deny that it is their fault at all. If you hold the party harmless, you are not simply claiming they will not be harmed.
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