hold-harmless clause

hold-harmless clause

A contract provision that if one party is harmed, injured, subjected to claims,sued,or has a judgment against it,the other party to the contract will reimburse the first party for all such costs,expenses,and claims.It is a common clause in commercial leases,because the law imposes liability on both owners and occupiers of land for a wide variety of injuries caused by defects in or on the property.By the time an innocent landlord,tenant,or other party to a contract is able to obtain a dismissal of charges as to them,the bills for legal fees could amount to many tens of thousands of dollars.To control this situation, landlords usually require hold-harmless clauses from tenants.On the other hand,if the tenant has the superior bargaining position,the tenant will refuse to indemnify the landlord and,in addition,require the landlord to indemnify the tenant! Also called an indemnity clause.