 |
| Image: Moneybestpal.com |
A "hold harmless clause" is a clause that is frequently inserted in contracts in the field of financial and legal agreements to transfer or minimize the risk of loss or obligation from one party to another.
Particularly, a keep harmless clause is a phrase in a contract wherein one party promises to defend and hold the other party safe from any and all losses, liabilities, or claims resulting from the performance of the contract.
As an illustration, a hold harmless language in a construction contract can require the contractor to defend and hold the owner blameless from any lawsuits, losses, or other liabilities resulting from the contractor's work on the project. This means that if the contractor's work leads to property damage or third-party injury, the contractor will be liable for the costs of such damages and will be forced to reimburse the owner for any losses sustained as a result.
Hold-harmless provisions are frequently included in leases, rental contracts, and other agreements where one party is taking on a certain amount of risk or liability. The exact terms and conditions of the contract, as well as any relevant state and federal regulations, may affect how enforceable a hold harmless clause is.
