How do you write a mutual indemnification clause?
Each party hereby agrees to indemnify, defend, and hold the other party harmless from any and all claims, demands, costs, liabilities, losses, expenses and damages (including reasonable attorneys’ fees, costs, and expert witnesses’ fees) arising out of or in connection with any claim that, taking the claimant’s …
Should indemnity clauses be mutual?
Many clients insist on unilateral indemnification clauses, basically putting all potential liability solely on a contractor’s shoulders. The latter should insist on a mutual indemnification clause, where both parties are responsible for liabilities that arise out of their own fault.
What is Mutual liability Limitation?
In no event will either Party be liable to the other for any claim or cause of action requesting or claiming any incidental, consequential, special, indirect, statutory, punitive or reliance damages.
Can two parties indemnify each other?
In a mutual indemnification, both parties agree to compensate the other party for losses arising out of the agreement to the extent those losses are caused by the indemnifying party’s breach of the contract. In a one-way indemnification, only one party provides this indemnity in favor of the other party.
What is a mutual hold harmless clause?
Often found in oil and gas operations, the mutual hold harmless means that each party agrees to pay for damage to their own property and injury to their own personnel, including any consequential losses.
How do you draft an indemnity clause?
Party A shall indemnify, defend and hold harmless Party B against any and all loss arising out of, by reason of, in connection with or as a result of third-party claims in connection with intellectual property that is the subject matter of license under this agreement.”
What is a Mutual liability?
Parties shall, to the extent allowed by law, each be individually liable for any and all claims, losses, causes of action, judgments, damages and expenses to the extent directly caused by their breach of this Agreement or failure to perform its obligations hereunder.
Can limitation of liability clause be mutual?
A mutual limitation liability clause may be applied, this must be fair on both of the parties thereby avoiding the other to be aggrieved over the recovery amount that has been negotiated between them.
How do you write a hold harmless agreement?
How to Fill Out a Hold Harmless Agreement
- The date of the agreement.
- The name of the person held harmless or protected, with their address.
- The name of the other party to the agreement, with their address.
- Details about the activity or event the agreement is about, such as horseback riding or country club membership.
What is an example of a hold harmless agreement?
Contractors: Contractors may require a hold harmless clause from those purchasing their services. For example, a contractor may agree to perform a service for a home renovation project on the condition that if any piece of his work causes harm later, he will not be held liable financially or legally.
What is indemnity language?
What are Indemnification Clauses? Indemnification clauses are clauses in contracts that set out to protect one party from liability if a third-party or third entity is harmed in any way.
What is indemnification language?
How do you limit liability in a contract?
Limitation of liability clauses typically limit the liability to one of the following amounts: (i) the compensation and fees paid under the contract; (ii) an agreed upon amount of money; (iii) available insurance coverage; or (iv) a combination of two or more of the above.
What is a hold harmless agreement Example?
An example would be you hire someone to do some remodeling work on your house and you do not want to be held liable if they hurt themselves while on your property. You can ask them to sign a Hold Harmless Agreement to protect you should an incident occur.
How do you write a hold harmless clause?
What is contract indemnity clause?
The word indemnity means security or protection against a financial liability. It typically occurs in the form of a contractual agreement made between parties in which one party agrees to pay for losses or damages suffered by the other party.