Hold harmless clause,
Definition of Hold harmless clause:
Exemption from liability is stated in a legal agreement which exempts one or both contracting parties from legal liability for injuries or damages caused by the contracting party.
The provisions of the agreement in which one or both parties do not hold the other responsible for the loss, damage or legal liability. In fact, this provision provides for unilateral or mutual compensation to the parties (as the case may be). See also compensation clause.
Companies can add a waiver to the contract if there is a risk that the contracted services will not be taken by the company legally or financially.
How to use Hold harmless clause in a sentence?
- Some states prohibit the use of waivers for certain construction works.
- Withdrawal prevents either party from being liable for any loss or damage to the agreement.
- When signing the clause, the other party is responsible for certain risks associated with the outsourced service.
Meaning of Hold harmless clause & Hold harmless clause Definition