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.

References in periodicals archive ?
The Antideficiency Act violation was caused by a contract containing a hold-harmless clause which subjected the Commission to potentially unlimited liability.
I tell the MCOs, `If you don't let us run tests that we believe are necessary, you'll have to modify the hold-harmless clause of our contract.
Ask that the hold-harmless clause be stricken from your contract.
GAO also found that a Commission contract for temporary employees violated the Antideficiency Act as it contained a hold-harmless clause which subjected the Commission to potentially unlimited liability.
Therefore, a CPA offering SysTrust services should consult legal counsel before using a loss-limiting or hold-harmless clause in an engagement letter.
Therefore, a CPA offering WebTrust services should consult legal counsel before using a loss-limiting or hold-harmless clause in an engagement letter.
Among other measures, writing center practitioners can help delineate the lines of responsibility and limit their risk of becoming scapegoats by continually communicating the center's mission to clients, keeping accurate records, and using hold-harmless clauses.