Legal Definitions - save-harmless clause

A save-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 financial loss or legal action resulting from the actions of the other party.

For example, a construction company may include a save-harmless clause in their contract with a client. This clause would state that the construction company will be responsible for any damages or injuries that occur on the job site, even if they are caused by the client or a third party. This protects the client from being held liable for any accidents that may occur during the construction process.

Another example of a save-harmless clause is in a rental agreement. The landlord may include a clause stating that they are not responsible for any injuries or damages that occur on the property, and that the tenant agrees to hold them harmless in the event of any legal action.

Overall, a save-harmless clause is a way for one party to shift the risk of liability to the other party. It is important to carefully review and understand any indemnity clauses in a contract before signing, as they can have significant financial and legal implications.