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 ?
* A hold-harmless clause in the event that a notice received by the CPA firm and forwarded to the client results in damages because the client fails to timely respond.
The Antideficiency Act violation was caused by a contract containing a hold-harmless clause which subjected the Commission to potentially unlimited liability.
Additionally, a typical payer-provider agreement contains a hold-harmless clause. Such clauses generally obligate the provider to look to the managed care organization for payment of services rendered, and not plan enrollees, except for copays or deductibles.
"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.' That's the clause in which the physician indemnifies the MCO against lawsuits resulting from adverse outcomes." Smith further warns an MCO, "If a patient sues you over an adverse outcome that results from slow lab results, I'll be forced to testify that prompt results would have been available had you let us test the patient in our POL." These arguments have always convinced the MCOs to allow Smith's POL to do the tests.
Ask that the hold-harmless clause be stricken from your contract.
Had a reverse hold-harmless clause been written into Kadison Pfaelzer's partnership agreement, releasing the remaining partners from the ex-partners' liabilities, the firm would have remained financially sound.
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.
* Indemnification and hold-harmless clauses. Third parties are not bound by engagement letters, and many professional liability claims result from third- party suits.