Legal Definitions - save-harmless agreement

A save-harmless agreement, also commonly known as a hold-harmless agreement, is a contractual provision where one party agrees to protect another party from liability for certain specified damages, losses, or claims that might arise from a particular transaction, activity, or event. Essentially, the party providing the "save-harmless" promise takes on the risk or responsibility for potential harm, preventing the other party from being held accountable for those specific issues.

• Example 1: Construction Project

  A homeowner hires a roofing company to replace their roof. The contract includes a save-harmless clause where the roofing company agrees to save the homeowner harmless from any claims or damages arising from the roofing company's work, such as an injury to one of the roofers while on the homeowner's property, or damage caused by the roofing company's equipment to a neighbor's fence.

  Explanation: This clause means that if a roofer gets injured and sues, or if the roofing company accidentally damages a neighbor's property, the homeowner will not be held responsible. The roofing company has contractually agreed to bear that liability and protect the homeowner from such claims.

• Example 2: Event Venue Rental

  A local charity rents a community hall for a fundraising gala. The rental agreement includes a save-harmless clause stating that the charity will save the hall owner harmless from any liability for injuries sustained by gala attendees or damage to the hall caused by the charity's guests or activities during the event.

  Explanation: Should a guest trip and fall at the gala, or if decorations installed by the charity cause damage to the hall, the charity has contractually agreed to take on the financial responsibility and legal defense, preventing the hall owner from being sued or held liable for these incidents.

• Example 3: Software Development Contract

  A small business contracts with a software developer to create a custom application. The contract contains a save-harmless provision where the developer agrees to save the business harmless from any claims of intellectual property infringement if the software they deliver uses code or elements that belong to a third party without proper licensing.

  Explanation: If a third party later sues the small business, claiming the custom software infringes on their copyright or patent, the software developer has agreed to defend the small business and cover any associated legal costs and damages, thereby protecting the business from this specific type of liability.