Hold Harmless Claus
Definition of 'Hold Harmless Claus'
For example, a hold harmless clause might be included in a contract between a landlord and a tenant. In this case, the hold harmless clause would protect the landlord from being held liable for any injuries that the tenant sustains on the property.
Hold harmless clauses can also be used in other types of contracts, such as employment contracts, insurance policies, and construction contracts. In each case, the purpose of the hold harmless clause is to protect one party from being held responsible for the actions or omissions of another party.
There are a few things to keep in mind when drafting a hold harmless clause. First, it is important to clearly define the scope of the clause. What risks are being shifted from one party to another? Second, it is important to make sure that the hold harmless clause is enforceable. This means that the clause must be drafted in a way that is clear and unambiguous.
Finally, it is important to remember that a hold harmless clause is only as good as the party that is obligated to it. If the party that is obligated to the hold harmless clause is unable to pay, then the other party may not be able to recover their losses.
Overall, a hold harmless clause can be a useful tool for protecting one party from being held responsible for the actions or omissions of another party. However, it is important to carefully draft the hold harmless clause to ensure that it is enforceable and that it covers the risks that the party wants to protect against.
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