Legal Definitions - hold-harmless clause

A hold-harmless clause, also known as an indemnity clause, is a provision in a contract where one party agrees to take responsibility for any harm or liability that the other party may face. This clause is often used to protect one party from legal action or financial loss that may arise from the actions of the other party.

For example, a construction company may include a hold-harmless clause in their contract with a property owner. This clause would state that the construction company is responsible for any damages or injuries that occur during the construction process, and the property owner would not be held liable.

Another example is a rental agreement between a landlord and a tenant. The hold-harmless clause would state that the tenant is responsible for any damages or injuries that occur on the property during their lease, and the landlord would not be held liable.

These examples illustrate how a hold-harmless clause can protect one party from legal or financial consequences that may arise from the actions of the other party.