Simple English definitions for legal terms
Read a random definition: Uniform Trade Secrets Act
An indemnity clause is a part of a contract where one person promises to take responsibility for any harm or damage that might happen to the other person. This is also called a hold-harmless clause or save-harmless clause. It is different from an exemption clause, which excuses one party from liability altogether.
An indemnity clause is a part of a contract where one party agrees to take responsibility for any harm or liability that the other party may face. This clause is also known as a hold-harmless or save-harmless clause. It is the opposite of an exemption clause, which relieves a party of liability.
Here are some examples of indemnity clauses:
These examples illustrate how an indemnity clause can shift the risk of harm or liability from one party to another. In each case, the party with more bargaining power (the car rental company, the construction contractor, or the software provider) is requiring the other party to take on more risk.